Benefits of Standards

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Economic benetsof standards


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FA, AFN, XAG, MGA, THB, PAB, ETB, VEVEF, BOB, GHC, CRC, SVC, NIC, NIO, DKCSD, SDD, TND, YUD, YUM, AED, MAD, ST UD, BSD, BZD, BMD, BND, KYD, CAD, XC

FJD, GYD, HKD, SBD, JMD, BBD, LRD, NANZD, SGD, SRD, TWD, TTD, USD, USS, US

WD, ZWR, ZWL, VND, GRD, AMD, XDR, CV

ZE, PTE, TPE, EUR, CHE, ANG, AWG, NLGHUF, ADF, BEF, BIF, KMF, CDF, DJF, FRF, GNLUF, MGF, RWF, CHF, XOF, XAF, XPF, XFO, XF

HW, HTG, PYG, UAH, PGK, LAK, HRK, MWK,K, AOA, AOK, AON, AOR, MMK, GEL, LV

LL, HNL, SLL, MDL, ROL, RON, BGL, BGZL, MTL, ITL, SML, VAL, LTL, CYP, EGP, FKIP, IEP, LBP, SHP, SDP, SDG, SYP, TRL, T P, LSL, AZM, AZN, TMM, TMT, DEM, BA

IM, MZM, MZN, BOV, ERN, NGN, BTN, X

EEK, ISK, NOK, SKK, SEK, CZK, CSK, GMKD, DZD, BHD, IQD, JOD, KWD, LYD, R

Economic benetsof standards


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International Organizationfor StandardizationISO Central Secretariat

, chemin de la Voie-CreuseCase postale

CH - Genève Switzerlandwww.iso.org


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Many organizations rom the private and public sector use standardsand participate in standards development. A few of them see stand-ardization as directly linked to their core business strategy. Someapproach standardization in a highly organized way and have a clear

perception o the impact o standards on their activities and per or-mance. Others may use standards rom a narrower perspective, orspecic processes or activities. Most o them realize that standardsbring benets to their organization, although the level o awarenessand the perception of such benets vary considerably.

But there are other organizations that make only marginal use o stand-ards or that do not use them at all. Companies that consider standardsa burden – something that cannot be avoided at times, but that isperceived as an additional cost or obligation with a negative impacton the company. Organizations that don’t even consider participat-

ing in standards development, or that are not aware o the potentialcontribution that standards can bring to their activities.

One of the key aspects of the mission of national standards bodies is to

Demonstratingand Communicating

the Value of Standards

Foreword


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This publication is intended precisely to assist ISO members in thistask by :

• Highlighting how standards create value for the organizationsthat use them, and how we calculate the value of standards, and

• Providing factsheets of case studies that quantify the benets ofstandards for companies of various sectors from over countries.

This material can be shared with decision makers and representa-tives of stakeholders to outline many concrete examples of the valueof standards.

The material is complemented by other in ormation resources onthe value of standards available on the ISO Website – such as vide-oclips, presentations, ull versions o case studies and o the ISO Methodology to assess the economic benets of consensus-based

standards , the “ ISO Methodology toolbox ”, the ISO repository ostudies on the benets o standards – which can be used by ISO members to communicate with stakeholders or to develop new stud-ies in their countries.

The development o this impressive in ormation resource would not

have been possible without the enthusiastic contribution of so manypeople rom the national standards bodies, the companies assessed,the university pro essors, students and consultants that have activelyparticipated in the development o case studies – along with us atthe ISO Central Secretariat. This is the result o a great collective effortand we wish to express our deep-felt gratitude to all those who havecontributed to it.

Daniele Gerundino, Director of Research


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People involved in standardization are convinced that their work gen-erates considerable benets or organizations, markets and society. Yet substantiating and quanti ying the real world value o voluntarystandards is not an easy task.

This is whyISO has developed the “ ISO Methodology ”, a consistentapproach to measuring this value, which has been tested in around company case studies in over countries across the globe. The

results speak or themselves : standards do create value or the organi-zations that use them and it is possible to quantify it.

The following summary describes, in a nutshell, how we quantify theeconomic value of applying standards.

Objectives of the ISO MethodologyThe ISO Methodology aims to identi y and quanti y themicroeco-nomic benets o standards, i.e. the economic contribution the useo standards makes to company prots or the costs/revenues o anorganization. All the standards assessed in this approach – whether

Methodology summaryQuantifying

the economic benetsof standards


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made available to the public. Such standards are ofen called “ externalstandards ” by standards users. Company “ internal ” standards which

are developed by the company itsel and are typically not shared withother parties are not covered in this assessment.

“ To be able to measure and quantify how standards have helped our organizationand our customers is invaluable, enabling us to identify areas where we have done well,

areas that we can further improve upon and gaps that we need to bridge. ”

Gerry Lee, Managing Director (Business Groups)NTUC FairPrice (Singapore)

Focusing on the value chainThe ISO Methodology is based on the Value Chain, which subdividesthe operations o a company into a number o key business unctions(see Figure ) that, in turn, group together certain activities.

A – Management & Administration

B – Research & Development

C – Engineering

D – Procurement

E – InboundLogistics

F – Production /Operations

G – OutboundLogistics

H – Marketing& Sales

I – Service

Figure – Analysing the company value chain.

Steps in the assessmentA our-step approach is used to assess the impacts o standards on


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Step : Understanding the value chain

The rst step is to position the company within the context o the

broader industry value chain.The value chain o the company then needs to be understood in termso its key business processes and its core value-adding activities. Den-ing the scope of the assessment is, at this stage, the most importantdecision : Should it cover the whole company ? Should it be limited toone or more o its business unctions ? The answer will depend on thecomplexity of the company and on the time and resources available.

Step : Identifying the impacts of standards

The second step consists in determining the business unctions and activ-ities in the company value chain where standards play a signicant role.

Existing company documentation (e.g. the quality manual, process andorganizational charts, other corporate or departmental documenta-tion) should be used to understand the processes, business unctionsand main activities included in each business function. At this point,company experts are interviewed to establish which standards (orgroups o standards) are applied to which activities within the selectedbusiness functions.

Step : Analysing the value drivers and determining opera-

tional indicatorsThis step analyses the company value drivers (i.e. its competitivestrengths) and determines the operational indicators that will beapplied to measure the impacts of standards.

. Value driversValue drivers are crucial organizational capabilities that give acompany a competitive advantage. If the impacts of standardscan be assessed in activities closely associated with value drivers,


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For example, if “ low-cost manufacturing ” is a company valuedriver, standards used in the production processes that contrib-

ute directly to this capability are likely to have greater impact.Similarly, if “ innovative, superior-quality products ” is a companyvalue driver, standards used in engineering and R&D that contrib-ute to this goal are presumed to have higher impact, and so on.In the following graphic, the intersection represents the area

where standards contribute to, and sustain, value drivers andkey activities.

Business functions andactivities using standards

Areas of operations wherevalue drivers exist

Figure – Intersection : standards will generate greater benetsif they support value drivers

I such an intersection cannot be ound, or i it is relatively limited,all other activities which are impacted by standards should be

considered as a secondary choice.. Operational indicatorsOne or more operational indicators need to be identied inorder to assess the impacts resulting from the use of standards.Operational indicators are measurable quantities associated

with company activities that show improvement or degradationof performance (e.g. time and cost, number of defects, waste,sales, customer satisfaction, etc.). The operational indicators you

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Step : Assessing and calculating results

The purpose of the whole assessment process is to :. Quantify the impacts of standards using the operational indi-cators and aggregate these impacts for each of the selectedbusiness functions

. Convert the quantities resulting from the use of standards foreach of the selected business functions into nancial gures

. Sum up the gures for all the selected business functions at agiven point in time to determine the total contribution of stand-ards to the company gross prot or EBIT (Earnings Before Interestand Tax) (see Figure )

EBIT

Revenue

Costs

Value generationof standards

Impact of standards

R&D / Engineering

Procurement

Inbound logistics

Production

Outbound logistics

Marketing & sales

Service

Administration

Standards Impact (summary description) -

• What is the impactof standards, in particularon the value drivers ?

Understanding

-

• In which businessfunctions can valuedrivers be identied andwhere do standards havea key impact ?

Selecting

-

• Which operationalindicators should be usedto measure the impact ?

Operationalizing

Figure – Relating business functions to impacts from standards and calculatingtheir effect on company value creation, expressed as a contribution to EBIT

“ When I received the [book] Economic benets of standards , I could not put it downuntil I had nished it. […] Its scientic approach, applicability and credibility

cannot be replaced by any other method. ”

Prof Li Chuntian (China)


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Successful case studiesSince ,ISO and its members have undertaken company casestudies in more than countries worldwide applying the ISO Meth-odology. The majority o the organizations selected are manu acturingcompanies, which comes as no surprise given the historical relevanceof technical standards for manufacturing.

When conducting the studies, key data can be obtained throughdesk research and available industry data. But most o the in orma-tion about the company comes rom interviews and workshops withcompany representatives, as well as rom company publications suchas annual reports and other documents (e.g. manuals o quality man-

agement systems).

Methodology in action

The ISO Methodology has been tried and tested on a number of organizations.Currently, the case studies span some different industries in countries, covering

areas such as the agri-food business, the chemical industry, construction andconstruction materials, electrical appliances, electrical power transmission, food retail

and food logistics, heating, ventilation and air conditioning, industrial automationequipment, information and telecommunication, pipes and piping systems,

shipbuilding, and water supply.

Consult our library of case studies on the ISO Website atwww.iso.org/benets_of_standards .

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Compelling ndingsThe case studies span enterprises o varying sizes, rom small compa-nies of employees with an annual sales revenue of approximatelyUSD . million to large conglomerates o several thousand employeesboasting an annual revenue exceeding USD . billion. Despite thehuge disparities in size, results consistently demonstrate that compa-nies achieve tangible benets from using standards.

The company case studies underscore three main types o benetsfrom using standards :

Key benet : Streamlining internal operations

One main nding is that standards can be used to streamline theinternal processes o a company, or example by reducing the timeneeded to per orm specic activities in the various business unc-tions, decreasing waste, reducing procurement costs and increasingproductivity. The case studies consistently report that the contributionof standards to the gross prot of companies ranges between . %and % of the annual sales revenues.

Key benet : Innovating and scaling up operations

Some case studies provide examples where standards served asthe basis or innovating business processes, allowing companies toexpand their suppliers’ network or to introduce and manage new prod-uct lines effectively. In other instances, standards helped mitigate therisk to companies o introducing new products onto national markets.

Key benet : Creating or entering new markets

Standards have been used as the basis or developing new products,penetrating new markets (both domestic and export), supporting themarket uptake o products, and even creating markets. In exceptional


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So what does this show us ? The numerous case studies carried outover the years provide substantial evidence o the benets companies

can obtain rom using standards. Results o the analytical approachadvocated in the ISO Methodology are convincing. The our-stepassessment offers a practical tool or companies (and organizationsin general) to better understand the impacts o standards on theiractivities and processes, and to maximize the benets derived rom

them. You can nd more information about the ISO Methodology in :Economic benets of standards. ISO Methodology . , InternationalOrganization or Standardization ( ), Geneva (downloadable atwww.iso.org/benets_of_standards ).

“ We were very satised and impressed with your ability to help usput into numbers things that we thought impossible. ”

Fernando Mascarenhas,Technical Documentation Coordinator,

Festo Brasil (Brazil)


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Fact sheets


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PT Wijaya Karya BetonStandards achieving excellence in concrete production

PT Wijaya Karya Beton ( WIKA BETON ) is one o the subsidiaries o PT Wijaya Karya

(Persero) – Tbk ( WIKA ), an Indonesian conglomerate active in the construction,industrial, mechanical, electrical, real estate and trading businesses. WIKA BETON is the Indonesian market leader in pre-cast concrete manu acturing and covers abroad product range.

Company name : PT Wijaya Karya(WIKA) Beton

Country : Indonesia

Industry : Construction &construction materials

No. of employees :

Revenues/prots :IDR . billion/IDR . billion(USD . million/USD . million)(in )*

Main products/services :Concrete structures used inconstruction, such as pre-stressedconcrete poles or power distributionlines and PC piles, concrete openchannels, concrete railway sleepers, bridge girders, sheet piles, pipes,plat orm slabs and a variety o building components.

Main use of standards :• Research and development/engineering


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What were the major benets for PT Wijaya Karyaof using standards ?

Using standards allowed PT Wijaya Karya to :• Improve its evaluation and selection process for suppliers• Save resources and optimize outcomes in research and development• Optimize information transfer through unied specications and harmonized

information capture• Ensure high-quality supplies• Optimize production processes• Obtain benets in sales negotiations by reference to standards, and

avoid misunderstandings

These benets translated into an annual contribution of approximately IDR . billion( USD ) to company gross prots.

How did standards lead to these benets ?

Under a unied quality management system based on ISO , the operations ofdifferent business unctions were integrated and optimized. Particularly relevantare the time savings in the engineering business function due to the disseminationof standardized information (e.g. for material specications, process specications

• OHSAS : ,Occupational health and safety management systems• Various ASTM standards related to concrete and cement• Various Japanese industrial standards (JISC) on steel and steel wires• Indonesian national standards (SNI) on concrete• Standards o the American Cement Institute (ACI)

Economic benets generated by standards : IDR . billion (USD )(annually), which amounts to . % o the annual sales revenue and closeto % o the annual EBIT.

Key qualitative benets : A unied management system allows or high-qualityoperations, resulting in increased customer condence.


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NTUC FairPriceStandards driving process improvementNTUC FairPrice is the largest supermarket chain in Singapore with a market share

o over %. It was ounded in by the labour movement with a social mis-sion to moderate the cost o living in Singapore. At the time o the study, it hadover retail outlets.

Company name : NTUC FairPrice

Country : SingaporeIndustry : Food retail/ ood logistics

No. of employees : Over

Revenues/prots : SGD billion/

over SGD million (USD . billion/USD . million) (in )*

Main products/services :All types o oods

The assessment focused in particularon the processing of :• Frozen pork• Milk and dairy products• Fresh vegetables

Main use of standards :• Procurement• Storage (including an automated sorting system) and transport• Delivery to, and support o , retail outlets

Most important standards used :• SS CP : ,Cold chain management – Milk and dairy products


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What were the major benets for NTUC of using standards ?

Using standards allowed NTUC to :• Double the volume of goods handled while retaining the number of employees,

leading to a revenue increase• Improve process efficiency• Extend the supplier network• Raise and maintain the level of product quality• Increase the level of customer condence and loyalty

These benets translated into annual savings of approximately SGD . million ( USD .million) in addition to nurturing a culture of continuous improvement in the company.


The main classes of standards investigated in this study were pallet standards, bar-code standards and cold chain standards for chilled pork, milk and dairy products.Standardized pallets helped the company systemize their handling of goods, makingoptimal use of storage and warehouse space, reducing delivery costs and facilitatingthe automation of warehouse operations.

In addition, standardized carton bar codes, which were introduced in , helpedimprove operational efficiency, the accuracy of information and the delivery of prod-ucts from their distribution centres. Before the use of carton bar codes, the companymanually recorded product in ormation, which was both time-consuming and asource o error. These measures meant the company could handle more goods(leading to a doubling o the number o retail outlets and growing sales o reshfruit) without signicantly increasing its manpower.The use of cold chain standards for both pork and milk and dairy products helped thecompany to ensure the proper management of pork milk and dairy products during

Total impact of standards from to : SGD . million (USD . million)

Key qualitative benets : Nurturing a culture o continuous improvement.


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AFA, AFN, XAG, MGA, THB, PAB, ETB, VEB, VEBOB, GHC, CRC, SVC, NIC, NIO, DKK, EEK, IS

NOK, SKK, SEK, CZK, CSK, GMD, MKD, DBHD, IQD, JOD, KWD, LYD, RSD, CSD, SND, YUD, YUM, AED, MAD, STD, AUD, BS

BZD, BMD, BND, KYD, CAD, XCD, FJD, GY

HKD, SBD, JMD, BBD, LRD, NAD, NZD, SGSRD, TWD, TTD, USD, USS, USN, ZWD, ZW

WL, VND, GRD, AMD, XDR, CVE, MZE, PTPE, EUR, CHE, ANG, AWG, NLG, HUF, AD

BEF, BIF, KMF, CDF, DJF, FRF, GNF, LUF, MGRWF, CHF, XOF, XAF, XPF, XFO, XFU, CH

G, PYG, UAH, PGK, LAK, HRK, MWK, ZMK,A, AOK, AON, AOR, MMK, GEL, LVL, ALNL, SLL, MDL, ROL, RON, BGL, BGN, SZL, M TL, SML, VAL, LTL, CYP, EGP, FKP, GIP, IEP, LBP, SDP, SDG, SYP, TRL, TRY, GBP, LSL, AZN, TMM, TMT, DEM, BAM, FIM, MZM, MZOV, ERN, NGN, BTN, XAU, MRO, TOP, XPD, M

PTT Chemical PublicCompany Limited (PTTCH),

ThailandCountry :ThailandISO member body :Thai IndustrialStandards Institute(TISI)Project team :Leader :Ms. ChaowaleeRatanamungmeka (Director of StandardizationPromotion andDevelopmentBureau, TISI)Consultant :Mr. PrakobPetcharutana (Senior VicePresident,NPCSafety andEnvironmental ServiceCo., Ltd.)Member :Ms. Nopporn Klum-em (Foreign RelationsOffi cer, InternationalAffairs Bureau, TISI)Member :Ms. Boonsri Hanesopa (Promotion Offi cer,Standardization Promotion andDevelopment Bureau, TISI)

ISO CentralSecretariat advisor :ReinhardWeissingerDurationof the study :October 2010– February 2011

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PTT ChemicalsStandards ensuring stable and reliable operationsPTT Chemical Public Company Limited ( PTTCH ) is a leading petrochemical com-

pany in Thailand. It operates broadly across the chemical sector and its mainproducts are olens and derivatives, polymers and ethylene oxide-based perfor-mance products.PTTCH manu actures polyethylene or the Thai process industry, which producesequipment and plastic resins used in daily li e. PTTCH has there ore contributedto reducing the imports o plastic resins, supporting the development o thenational economy.

Company name : PTT Chemical PublicCompany (PTTCH)

Country : Thailand

Industry : Chemical industry

No. of employees :

Revenues/prots :THB . billion/THB . billion(USD . billion/USD million)( or total PTTCH) (in )*

Main products/services :

Various chemical products (olens, polymerproducts, EO-based products, oleochemicalproducts, ethylene, propylene, etc.).The assessment ocused on high-density


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What were the major benets for PTTCH of using standards ?

Using standards allowed PTTCH to operate the plant in a stable and consistent way,enabling it to reach its maximum level of output.

How did standards lead to these benets ?TheISO quality management system played a key role in dening fundamentalguidelines for good manufacturing practice, supporting the introduction of measureswith a quantiable impact on the our key indicators used by PTTCH to assess theper ormance o its production processes : plant reliability (deviation rom optimalproduction capacity), off specication (percentage o product not con orming tospecication), ethylene consumption (percentage of nal product) and energy index(usage of energy per ton of product).

Most important standards used :• ISO : ,Quality management systems• ISO : ,Environmental management systems

• OHSAS/TIS : ,Occupational health and safety management systems• ISO/IEC : ,Requirements for the competence of testing and

calibrating laboratories• Various technical standards related to testing and product characteristics

(JIS, ASTM and others)

Economic benets generated by standards : USD . million annually,which amounts to approximately % o the annual sales revenue attributableto the HDPE l- plant.

Key qualitative benets : The combined e ect o management systemstandards and product/testing standards brought a steady increaseto the plant’s output. The speci ic impact o ISO/IEC certi ication

or the PTTCH testing service centre could not be quanti ied. However,it contributed signi icantly to ensuring the e ectiveness and consistencyo laboratory tests or raw materials and the inished products.


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VINAKIPStandards improving business processes and qualityEstablished in ,VINAKIP is a subsidiary o the Vietnam Electrical Equipment

Corporation, a joint public company of which . % are owned by the Ministry ofIndustry and Trade and . % by private shareholders.

Company name : Electrical Devices Joint Stock Company No. 1 (VINAKIP)

Country : Vietnam

Industry : Electrical appliances

No. of employees :Revenues/prots : VND billion/N.A. (USD . million/N.A.)(in )*

Main products/services :Sockets, wires and cables,electromagnetic ballasts, plugs,switches, lamp holders, electricalboards, circuit-breakers, magneticcontactors, and uses.The assessment concentratedon two types o products : sockets,and wires and cables.

Main use of standards :• Procurement, including testing o incoming materials• Production


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What were the major benets for VINAKIP of usingstandards ?

Using standards allowed VINAKIP to :• Reduce product lines to a limited number of standardized products• Improve control over materials provided by suppliers, thereby ensuring

the quality of supplies• Simplify supplier management by insisting on the use of standards• Share information efficiently between internal departments• Reduce production costs and limit the generation of waste• Improve training of staff by referencing standards• Unify documentation, packaging and labelling practices for most of its products• Instil a culture of continuous improvement in the company


The quality management system based on ISO helped VINAKIP dene itsbusiness processes clearly and share information regarding product characteristics,key activities, performance indicators and good practice. This resulted in the overallimprovement of processes, a reduction in product variety and better cooperationwith suppliers, leading to higher-quality inputs, less waste and a lower numberof repairs.The extensive use o product and testing standards allowed VINAKIP to meetcustomer expectations and legal requirements, while the ISO certicationstrengthened the company’s reputation and customers’ condence in its products.

Economic benets generated by standards : VND . billion (USD )which amounts to . % o the annual sales revenues.

Key qualitative benets : Standards helped develop a culture o continuousimprovement.


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Festo Brasil Standards sustaining engineering and manu acturingexcellence

Festo Brasil is the Brazilian subsidiary of the German company Festo, a world-leadingprovider o pneumatic and electric drive technology, integrated systems, and ser-vices or actory and process automation. Festo Brasil is one o the group’s largestcompanies and manu actures a wide variety o products or the Brazilian marketand for export to other Festo subsidiaries and to the parent company.

Company name : Festo Brasil

Country : Brazil

Industry : Industrial automationequipment

No. of employees :

Revenues/prots :BRL million/N.A.(USD million/N.A.) (in )*Main products/services :Over products, rom valves tocomplex industrial automation equip-ment, used in all important sectors oindustry : automotive, ood, packaging,plastics, electronics, etc.

Main use of standards :• Engineering


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What were the major benets for Festo Brasil of usingstandards ?

Using standards allowed Festo Brasil to :• Implement an efficient procurement process resulting in signicant work savings• Save around % in its purchase operations by buying standardized supplies• Optimize the design times of its engineers and shorten time to market• Improve communication between different technical departments in the company• Implement a company-wide continual improvement process that streamlined

manufacturing and brought signicant savings


As an innovative company with a focus on high-quality sophisticated equipment andthe ability to customize equipment to user needs, Festo Brasil uses standards in all itskey business processes. Using standards in procurement and focusing on the purchaseof standards-based parts saved around % in costs. Procurement, which makes uparound % o the quantitative gains, is the unction which benetted most romstandards. Due to clever use of advanced standards, the design time of engineers, aswell as the overall project time, could be reduced, allowing new or customized productsto reach the market within a shorter time frame than otherwise possible.

• ISO/TS , Application of ISO to the automotive industry • VDA . ,Quality management system for equipment suppliers

in the automotive industry

• Many other materials, testing, product and design standards developed by ISO,DIN, EN, SAE, UL, AISI and others

Economic benets generated by standards : BRL . million (USD . million)annually, which amounts to . % o sales revenues.

Key qualitative benets : Standards are considered an essential component ogood engineering and manu acturing practices, with a potential that has not yetbeen ully exploited.


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Gerfor Standards creating competitive advantageGer or is a Colombian multinational company active in the plastics and synthetic

bres sector of the petrochemical industry. It is one of the leading South Americancompanies in the production and commercialization o aucets and PVC and CPVC piping and ttings.

Company name : Ger or

Country : Colombia

Industry : Faucets, pipesand piping systems

No. of employees :

Revenues/prots :USD . million/USD . million (in )

Main products/services :PVC and CPVC pipes and ttings

or the construction and sewerageindustries, tiles, PVC covers,household aucets, solvent cement.

Main use of standards :• Continual improvement

in production and operations• Market access (marketing

and sales)


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What were the major benets for Gerfor of using standards ?

Using standards allowed Gerfor to :• Expand rapidly on the domestic market, meeting and driving demand

for quality products• Access international markets by fullling market entry conditions• Optimize internal operations• Ensure the quality of supplies


Ger or is a serious implementer o product and testing standards and contributesto their development through active participation in standardization committeesat the national and international levels.The company has helped promote quality in Colombia through the developmentof standards for PVC pipes and other products. Compliance with such standardshas gradually emerged as an essential requirement for most high-volume projects(both in the private and public sectors). This resulted in a signicant competitiveadvantage or all companies able to master product quality and demonstrate

compliance. (All Ger or products are designed and certied in con ormity withColombian standards.)Gerfor is now turning its attention to the international market in order to meet existingand emerging product and testing requirements in foreign countries.Gerfor has also been very active in implementing management standards, introduc-

ing the ISO ,ISO andOHSAS management systems, which havehelped streamline its processes and increase quality and reliability.

Key qualitative benets : In addition to the quantied impacts, benetsto research and development and to engineering are also deemed substantial.


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Danper Standards opening export marketsFounded in , Danper is one o the largest agro-exporter companies in Peru,

boasting total revenues o USD million in , derived almost entirely romexport (to the USA, Europe and other markets). Asparagus (white and green) andartichokes are by ar the most important specialities produced by Danper and itsbusiness comprises three major lines : preserved goods (about % of sales), freshproducts ( % of sales) and frozen products ( % of sales).

Company name : Danper Trujillo

Country : Peru

Industry : Agri- ood business

No. of employees :

Revenues/prots :USD million/N.A. (in )

Main products/services :Asparagus (white and green),artichokes, peppers, beans, mangoes,papayas – preserved, resh and

rozen vegetables and ruits.Assessment was restricted tothe asparagus business line.

Main use of standards :• Harvesting (production)• Sampling• Storage


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What were the major benets for Danper of usingstandards ?

Using standards (and certications) allowed Danper to :

• Continually improve its skills and implement an efficient and reliableproduction chain• Manage a highly efficient cold chain and delivery service for fresh produce,

ensuring product quality requirements in overseas markets are met• Demonstrate to overseas customers its ability to produce and deliver safe,

high-quality products and qualify as a supplier for them• Export close to % of its produce and penetrate new markets by meeting

the requirements and building the condence of key international retailers


Danper considers the use of standards – and the proactive implementation of newstandards – essential to improving production, procurement, farming and logistical

B t t i t tl d t ti g li ith t d d d

• NTP . ( ), ASPARAGUS – Asparagus fresh – Requirements• NTP . ( ), ASPARAGUS – Refrigerated transportation guide• NTP . ( ), ASPARAGUS – Hygienic practices for processing

of fresh asparagus• OHSAS : ,Occupational health and safety management systems• HACCP (FAO/Codex Alimentarius)• SA ,Social accountability • GlobalGap (version ) and US GAP (version . ),Safe and sanitary agriculture• BASC - ,Business Alliance for Secure Commerce

• Regulations rom various countries and regions (Peru, EU, UK)Economic benets generated by standards : USD annually whichamounts to . % o sales revenue.

Key qualitative benets : Standards helped instil a culture o continuousimprovement in the company.


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Lobatse Clay WorksStandards creating process efficienciesLobatse Clay Works ( LCW ) began operating in as a joint venture between the

Botswana Development Corporation ( BDC ) and an American company, Inter-Kiln.In , Inter-Kiln diversied andBDC gained total ownership of LCW. The companyproduces mainly face bricks, but also window sills and pavers, which are categorizedas special bricks. LCW boasts an output o over million items per year and hasbeen a major partner in building Botswana’s infrastructure.

Company name : Lobatse Clay Works(PTY) Ltd. (LCW)

Country : BotswanaIndustry : Constructionand construction materials

No. of employees :

Revenues/prots :

BWP million/BWP million(USD . million/USD . million)(in )*

Main products/services :Bricks ( ace bricks, pavers,window sills)

Main use of standards :Standards were used extensively in production, the business unction coveredby the assessment.


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What were the major benets for LCW of using standards ?Using standards allowed LCW to :• Calibrate its equipment and keep it in good working order • Increase the conformance rate of raw materials received from suppliers• Improve the production process, minimizing product failures• Reduce the number of incidents causing health and safety issues


Standards have helped LCW to ocus its operations on a limited number o bricktypes, which it produces to a consistently high quality. Quality procedures deningits processes, rom the excavation o clay soil to the production o the nal bricksand their packaging, storage and delivery to customers, have helped the companystreamline its production processes and optimize production runs with xed settings

o the equipment. Adherence to BOS , which denes specications or differenttypes of bricks, has been key to ensuring consistent quality.

Economic benets generated by standards : BWP (USD )annually, corresponding to . % o company sales revenue or . % ocompany EBIT (in ).

Key qualitative benets : The reduction in number o products bolsteredefficiency ; communication within the LCW production unit was made easierand the training o staff was improved by re erring to standards.


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PPC CementStandards sustaining company reputation through qualityPretoria Portland Cement Company ( PPC ) was established in when the rst

cement plant was developed in South A rica to counter the high cost o cementimported rom Europe. Today,PPC is the leading supplier o cement in SouthernAfrica. In its eight cement manufacturing facilities and three milling depots in SouthAfrica, Botswana and Zimbabwe, the company can produce around eight million tonso cement products each year. PPC also produces aggregates, metallurgical-gradelime, burnt dolomite and limestone through the controlled companies PPC-AggregateQuarries Pty and PPC-Lime.

Company name : PretoriaPortland Cement Company Limited

(PPC Cement)Country : South A rica

Industry : Constructionand construction materials

No. of employees : Around

Revenues/prots :ZAR . billion/N.A.(USD million/N.A.)(in )*

Main products/services :

Different types o cement or general-purpose and specialist use

Main use of standards :The assessment ocused on


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What were the major benets for PPC Cement of usingstandards ?

Using standards allowed PPC Cement to :• Increase workforce competence• Reduce waste, energy consumption, emissions and product defects• Streamline production processes and lower production costs• Reduce the number of incidents causing health and safety issues• Improve risk management in its operations• Win contracts and expand markets by meeting product requirements, having

previously obtained certications


Standards are used by the R&D unit to ensure that manu acturing processes arecompatible with, and regularly upgraded to, new technology, driving a more efficientmanufacturing process.Standards had a positive impact on staff development, reducing the time allocatedto training and encouraging staff to use standards throughout their operations as

Most important standards used :• SANS ,Composition and specication of cement • SANS ,Methods of testing cement

• SANS : ,Quality management systems• SANS : ,Environmental management systems• SANS : ,Occupational health and safety management systems• SANS ,Requirements for the competence of testing and calibration

laboratories• SANS ,Requirement for the content of packages

Economic benets generated by standards : ZAR . million (USD . million)annually, which amounts to . % o the company’s sales revenue.

Key qualitative benets : A dynamic quality culture was embedded throughoutthe company.


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AFA, AFN, XAG, MGA, THB, PAB, ETB, VEB, VEBOB, GHC, CRC, SVC, NIC, NIO, DKK, EEK, IS

NOK, SKK, SEK, CZK, CSK, GMD, MKD, DBHD, IQD, JOD, KWD, LYD, RSD, CSD, S

ND, YUD, YUM, AED, MAD, STD, AUD, BSBZD, BMD, BND, KYD, CAD, XCD, FJD, GY

HKD, SBD, JMD, BBD, LRD, NAD, NZD, SGSRD, TWD, TTD, USD, USS, USN, ZWD, ZW

WL, VND, GRD, AMD, XDR, CVE, MZE, PTPE, EUR, CHE, ANG, AWG, NLG, HUF, ADBEF, BIF, KMF, CDF, DJF, FRF, GNF, LUF, MGRWF, CHF, XOF, XAF, XPF, XFO, XFU, CH

G, PYG, UAH, PGK, LAK, HRK, MWK, ZMK,A, AOK, AON, AOR, MMK, GEL, LVL, ALNL, SLL, MDL, ROL, RON, BGL, BGN, SZL, M TL, SML, VAL, LTL, CYP, EGP, FKP, GIP, IEP, LBP, SDP, SDG, SYP, TRL, TRY, GBP, LSL, AZN, TMM, TMT, DEM, BAM, FIM, MZM, MZOV, ERN, NGN, BTN, XAU, MRO, TOP, XPD, M

Siemens AG, Germany

Country :GermanyISO member body :DINDeutsches Institutfür Normung(DINGerman Institutefor Standardization)Project team :Author :Mr. Henryk Wolisz, Student, TechnicalUniversity Berlin,Departmentof Economicsand ManagementAdvisors :Prof.Dr.rer.pol. KnutBlind,TechnicalUniversity Berlin,Chair ofInnovationEconomics,Dipl.-Ing. Heinz Gaub, M. Sc., DIN, Member of theManagement Board,Dr. NorbertTrapp, SiemensAG, Director of R&DBerlin, High VoltageProducts

Durationof the study :October 2010– March 2011

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SiemensStandards sustaining product innovationThe global company known today as Siemens AG was ounded in as the

Telegraph Construction Company o Siemens & Halske in Berlin, Germany. Thecompany subsequently became a world leader in the eld o electrotechnologyand further diversied into medical devices and household appliances.Today, Siemens AG is divided into three sectors : industry, healthcare and energy.Siemens Energy is a world market leader in the development and provision of energyplants for power generation, transmission and distribution.The assessment ocused on switch technologies, a line o business belonging tothe Siemens Energy branch.

Company name : Siemens AGSwitch technology sector

Country : Germany

Industry : Electrical power transmission

No. of employees : Total employeeso Siemens AG :

Revenues/prots :Total revenue o Siemens AG :EUR . billion/net prot EUR billion(USD . billion/net prot USD .

billion) (in )*Main products/services :Power switches and switchgear. Thesei l d hi h l i h d d i l i i i d

M i d d d Si h l hi i d d


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What were the major benets for Siemens of usingstandards ?

Using standards allowed Siemens to :• Become aware of changes to procedures for developing and

approving switches

• Implement changes to technical requirements for switches and switchgear • Embrace quality and service requirements• Adopt changes to recommended and mandatory values, in particular those

relevant to tendering• Take early steps to implement the standards in cost-effective ways and thereby

acquire a leadership position over its competitors


Through active participation in standards development, Siemens is able to influencetheir content and remains informed of any upcoming changes in new editions. Thecompany is there ore in a position to take early measures to accommodate thechanges and nd cost-effective ways of implementing them in its products.

Most important standards used : Siemens has a long history o using standardsand a broad experience with standardization. All o Siemens’ switchgear devicesmeet or exceed existing standards (primarily DIN EN standards) and are known

on the market or their high level o sa ety, reliability and durability.For this reason, the assessment ocused on the incremental benets to Siemensarising rom its migration to the latest edition o a particular series o standards,the DIN EN series on high-voltage switchgear and controlgear.

Economic benets generated by standards : Between . % to . % o the EBITo the relevant business units in Siemens.

Key qualitative benets : Standards brought a notable change in managementculture.


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NanotronStandards creating competitive advantageNanotron is a small-sized engineering company founded in Berlin, Germany, in

and active in the global information and communication technology ( ICT ) sector. Withthe support of venture capital, Nanotron started up its own technology developmentin and was able to build a patented technology based on CSS (Chirp SpreadSpectrum), a spread-spectrum technique that uses wideband linear requencymodulated chirp pulses to encode in ormation. Its rst product, the nanometer,was introduced in to enable the implementation of wireless networks.

Company name : NanotronTechnologies GmbH

Country : Germany

Industry : In ormationand telecommunication

No. of employees :

Revenues/prots :USD . million/N.A. (in )

Main products/services :Nanotron’s current productport olio ocuses on physicalposition localization : wirelessproducts that help to protect andnd people, animals and valuableassets by transmitting in ormation

• IEEE Low rate wireless personal area networks


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What were the major benets for Nanotron of usingstandards ?

Using standards allowed Nanotron to :• Become an industry leader for remote sensing and real-time location devices• Specify product requirements precisely on the basis of standards• Increase customer condence in Nanotron products by basing them

on standards• Reduce product development costs• Increase the accuracy of product descriptions and technical documentation• Optimize company internal processes


By engaging in standards development, Nanotron was able to contribute its technol-

ogy, including patents, to standardization and, hence, shape the content of futurestandards. At the same time, it was able to bring its internal developments in linewith the development of new standards.A portfolio of products based on International Standards enables Nanotron – whichis a small company – to reassure potential customers as to the long-term reliability

of its technologies and generate the condence to invest in its products.Nanotron was able to exploit its technical leadership image and the network of rela-tions it had developed through its standardization work by establishing commercial

• IEEE . . ,Low-rate wireless personal area networks• DIN EN ISO ,Quality management systems

Economic benets generated by standards : USD . million (close to %o sales revenue in ).Key qualitative benets : Involvement in standards development and early adop-tion o standards established the company’s technology leadership within its eld.


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PPP PSLStandards sustaining innovation and creating marketleadership

PPP PSL is part o the Desbro Group o Companies, a conglomerate active inmanu acturing and trading activities in a variety o sectors in Mauritius, Reunion,Madagascar, South Africa, Kenya, Uganda, Tanzania, the Seychelles and the UnitedArab Emirates.PPP PSL manufactures plastic pipes and ttings made of PVC-U in sizes ranging from

mm to mm.PPP PSL also manufactures polypropylene ( PP ) single-wall cor-rugated pipes in small sizes for electrical conduit applications, and has a subsidiarycompany involved in the manufacture of polyethylene ( PE ) pipes.

Company name : Plastic Pipesand Products Piping Systems(PPP PSL) Ltd.

Country : Mauritius

Industry : Pipes and piping systems

No. of employees :Revenues/prots :MUR . million/MUR . million(USD million/USD )(in )*

Main products/services :Plastic pipes and ttings or watersupply, sewerage, drainage andconduits or electric wires. Double-

Most important standards used :


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What were the major benets for PPP PSL of using standards ?

Using standards allowed PPP PSL to :• Reduce costs by reducing waste and the number of rejected products and reworks• Use energy efficiently and apply efficient procurement practices• Operate a highly reliable production chain


PPP PSL uses standards systematically in order to reach a stable production processand to save materials by reducing waste as well as other resource, such as energy.These savings contribute to rises in gross prot.As the rst company in its eld in Mauritius, PPP PSL applied a European standard forstructured wall pipes which allowed it to manufacture pipes with a double-wall structurethat saves on materials while maintaining the same level of performance and reliabilityas traditional pipes. Using standards has enabled PPP PSL to success ully undergotesting and gain quality marks or its products, which in turn contribute to its strongmarket position This has becomeincreasingly important in Mauritius where the market

Most important standards used :Various standards with specications or products and testing methods, such as :• ISO ,Plastics piping systems for water supply and drainage

• ISO ,Plastics piping systems for soil and discharge• ISO and EN ,Plastics piping systems for underground drainageand sewerage

• ISO ,Quality management systems• Other standards on product and testing requirements

Economic benets generated by standards : MUR . million (USD )

without structured wall pipes and MUR . million (USD ) includingstructured wall pipes. The rst gure amounts to . % o revenues,the latter to . %.

Key qualitative benets : Standards allowed PPP PSL to be continuouslyinnovative and a leader in its domestic market.


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JuhaynaStandards ensuring ood sa ety and supportinghigh-quality automated production

Juhayna Food Industries is a leading Egypt-based manufacturer specializing in theproduction, processing and packaging of milk, yoghurt, juice and juice concentrate.When Juhayna’s founder, Safwan Thabet, established the company in , he hadthe vision to produce dairy and juice products o the highest quality by applyingthe most up-to-date technology. The company has continued to reinvent itself ever

since in response to both global trends and local market needs, becoming a leaderin the Egyptian market and a signicant regional exporter.

Company name : Juhayna FoodIndustries S.A.E.Country : Egypt


No. of employees :

Revenues/prots : EGP billion/N.A.(USD million/N.A.) (averageannual revenue to )*

Main products/services :Milk, ruit juice and yoghurt products.The assessment ocused on theproduction o packaged ruit juices.Main use of standards :• Procurement (supply chain)

• Good Manu acturing Practices (EU and US Guidelines)


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What were the major benets for Juhayna of usingstandards ?

Using standards allowed Juhayna to implement a highly effective managementsystem and specic functional improvements to :• Enhance communication with suppliers• Apply an automated system minimizing human error

• Reduce costs for re-work and replacement as a consequence of decient quality• Ensure product safety• Achieve high-volume production and improve efficiency• Reduce waste and scrap and improve environmental performance• Increase market share


The company’s juice products are manufactured at its new state-of-the-art El-Dawleyafactory. This facility, designed and built to international food and hygiene standards,implements a fully automated process that controls the reception of raw materials,as well as the mixing process, package lling and palletizing of the nal product viacomputerized systems.Management product and testing standards provide a solid ramework straight-

g ( )• ISO : ,Requirements for the competence of testing

and calibration laboratories

• OHSAS : ,Occupational health and safety management systems• HACCP (FAO/Codex Alimentarius)• Many Egyptian national standards, mainly or product and labelling requirements

Economic benets generated by standards : EGP . million annually(USD million in ), which amounts to . % o the annual average revenue.

Key qualitative benets : Implementing standards has ostered consistently highproduct quality, and heightened environmental per ormance and cost reductionsdue to savings in materials. Training suppliers has helped improve their per ormance.


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PetraStandards as a basis or building international competitivenessPetra Engineering Industries Co. is a leading engineering company in the heating,ventilation and air-conditioning ( HVAC ) industry in Jordan. Founded in with avision to produce a wide range o equipment meeting the requirements o majormarkets, the company has expanded signicantly. Today, about % o its totalsales derive rom exports, primarily to the Middle East, but also to the USA andother countries.

Company name : Petra EngineeringIndustries Co.

Country : Jordan

Industry : Heating, ventilation,air conditioning (HVAC)

No. of employees : Over (in )

Revenues/prots : N.A.Main products/services :Wide port olio o heating, ventilationand air-conditioning products

Main use of standards :• Research and development• Procurement• Production, quality assurance• Marketing and sales

• Various European standards (EN) mainly or testing methods


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What were the major benets for Petra of usingstandards ?

Using standards allowed Petra to :

• Save on the cost of testing inputs by purchasing from certied suppliers• Achieve higher reliability/quality of supplies by using standardized components

High-quality, reliable materials and parts are a pre-condition for Petra’s manufacturingexcellence and reputation.


Standards were used systematically in the rst instance to evaluate the quality osupplies. On that basis, Petra was able to switch to purchasing inputs from certied

suppliers only.With the help of the ISO quality management system, Petra was able to ensuretight control over its production processes, helping to build up its reputation asa high-quality producer. The company was also success ul in obtaining variousinternationally recognized certications. Standards and certication marks featureprominently in Petra’s product catalogues, highlighting the importance the com-pany attributes to standards as a means of forging an international reputation andentering foreign markets.

• UL standards or heating and cooling equipment

Economic benets generated by standards : . % o Petra’s average sales

revenues between and .Key qualitative benets : Improved environmental and sa ety managementstrengthened the company’s reputation, while efficient service enhancedcustomer satis action.


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Holcim LebanonStandards or risk reduction and market acceptanceHolcim Lebanon S.A.L. ( HL ) was incorporated in Lebanon in as a subsidi-ary o the Switzerland-based Holcim Ltd., one o the largest cement producersin the world. The company produces and markets grey and white cement andother related concrete construction products. It ocuses on offering high-qualityproducts and enhancing its image to customers as an environmentally responsibleorganization. HL is the leading cement producer in Lebanon.

Company name : HolcimLebanon S.A.L.

Country : Lebanon


No. of employees : Around

Revenues/prots :

Average - :USD . million/USD . million

Main products/services :Wide port olio o cement products

Main use of standards :Manu acturing o cement

Most important standards used :• ISO : ,Quality

management systems


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MAGA EngineeringStandards as a means to capture and trans er know-how

MAGA started as a construction company in , working with several internationalcontractors executing projects in Sri Lanka. Since then, the company has madesignicant inroads into the local and international construction industry, and haswon the most prestigious quality awards issued by the Institute or ConstructionTraining and Development ( ICTAD ) of Sri Lanka.

Company name : MAGA Engineering(Pvt) Ltd.

Country : Sri Lanka


No. of employees : (o which are direct employees)

Revenues/prots :LKR . billion (USD . million)Revenues rom building construction :LKR . billion (USD . million)(in )*

Main products/services :• Wide port olio o large-scale

residential and office buildings,hospitals, etc.

• In rastructure constructions(e.g. bridges, highways)

Most important standards used :• ISO : Quality management systems


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What were the major benets for MAGA of using standards ?

Using standards allowed MAGA to :

• Increase its efficiency in purchasing from suppliers• Test whether supplies meet requirements and thereby ensure quality• Improve consistency in supplier evaluation and selection• Increase construction quality and reduce need for re-work


The ISO -based quality management system enabled MAGA to develop anintegrated approach to managing its key processes, and trans er experiences and

good practices systematically rom one project to another. This helped increaseefficiency, create a wealth o experience and promote continuous learning andimprovement within the company.

• ISO : ,Quality management systems• ISO : ,Environmental management systems

• OHSAS : ,Occupational health and safety management systems• Many Sri Lankan national standards, mainly on construction materials

Economic benets generated by standards : LKR (USD ),corresponding to . % o the average annual revenue.

Key qualitative benets : The purchasing process, supplier evaluation and storagemanagement have become more efficient with the ISO system in place.


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Dalian ShipbuildingStandards as a tool or innovation and legal compliance

The Dalian Shipbuilding Industry Company, located in the city o Dalian, LiaoningProvince, China, is the largest shipbuilding enterprise in China. It is part of the ChinaShipbuilding Industry Corporation ( CSIC ), one o the two state-owned shipbuild-ing corporations in China. A lagship o China’s shipbuilding industry, the DalianShipbuilding Industry Corporation (hereinafer re erred to as DSIC ) is a modernengineering and nal assembly company spanning ve industries – shipbuilding,defence, ocean engineering, ship repair (including shipbreaking) and heavy industrialmanufacturing (e.g. equipment for offshore plants).

Company name : Dalian ShipbuildingIndustry Co. Ltd. (DISC)

Country : China

Industry : Shipbuilding

No. of employees : DISC total : Research&development (R&D) :

Revenues/prots : From R&D :CNY . million/N.A.(USD . million/N.A.)Total revenue o DISC :CNY . billion (USD . billion)(in )*

Main products/services :The assessment ocused on the R&D business unction o DSIC’s shipbuildingbranch. The products o the shipbuilding branch are divided into oil tankers, bulk

Most important standards used :• Conventions o the International Maritime Organization (IMO)


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What were the major benets for DISC of using standards ?

Using standards allowed DISC to :• Improve the design of ships and components based on customer requirements• Reduce design errors and ensure safety• Promote customer condence through widespread use of standards• Reduce negotiation time by referencing standards• Ensure compliance with regulatory requirements• Unify and re-use design documentation• Ease cooperation with suppliers through use of agreed standards-based solutions


Standards are applied extensively by all DISC engineering offices. They make it pos-sible to refer to proven solutions, helping to reduce risk and shorten design cycles.They also acilitate the re-use o solutions developed in other projects and theirapplication to new projects. Standards make compiling technical instructions orcontracts easier, allowing greater accuracy in determining technical parameters and

reducing the time needed to reach agreement with ship owners. The compilationof test les follows standardized rules and formats, which improves work efficiencyand design quality.

Conventions o the International Maritime Organization (IMO)• Chinese national standards

• Chinese industry-sector standards or the shipbuilding industry• Some ISO standards (ISO , ISO and standards o ISO/TC )• OHSAS : ,Occupational health and safety management systems• Many technical regulations and mandatory standards o China

Economic benets generated by standards : CNY . million (USD million)annually (around % o the revenues o the R&D unction).

Key qualitative benets : In ormation sharing inside DISC and with supplierswas improved.


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Xinxing Ductile Iron PipesStandards creating process efficiencies

Born out o a military steel plant ounded in , the company has been listedon the Shenzhen Stock Exchange since and belongs to the Xinxing CathayInternational Group under the state-owned Assets Supervision and AdministrationCommission of China. Xinxing is the largest producer of ductile iron pipes and steelgratings in China, claiming over % o the domestic market. The company alsohas a substantial share o the world market, with exports to some countriesgenerating % of its revenue.

Company name : Xinxing Ductile IronPipes Co. Ltd.

Country : China

Industry : Pipes and piping systems

No. of employees : In scope oassessment : (o a total o )

Revenues/prots :In scope o assessment :CNY billion/CNY million(USD . billion/USD . million)Total revenue :CNY . billion (USD . billion)(in )*

Main products/services :Iron and steel pipes or use in water supply and industrial waste disposal systems,communications, electrical power, petroleum and other sectors. The assessment

oc sed on t o actories o Xin ing in the W an ind strial one o Handan Cit

• Procurement, including supplies testing• Engineering


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What were the major benets for Xinxing of using standards ?

Compliance with a number of standards is a prerequisite for obtaining productionlicenses, as many products are subject to requirements dened in regulations ormandatory standards. Using standards also allowed Xinxing to :• Produce high-quality, low-cost products while remaining competitive• Ensure the consistent quality of its iron and steel products• Gain in efficiency through implementing proven solutions, reducing errors and

re-using design solutions developed for previous projects

• Achieve cost reductions in procurement• Simplify tenders• Meet requirements in product certication


Xinxing used management system standards as a framework for organizing projectsand integrating operations into a common approach This was a pre-condition or

g g• Research and development

Most important standards used :• ISO : ,Quality management systems• ISO : ,Environmental management systems• OHSAS : ,Occupational health and safety management systems• Various Chinese national and industry-sector standards on design specications,

product requirements, raw materials and testing

• Various technical regulations and mandatory standards o ChinaEconomic benets generated by standards : CYN million annually(USD . million), amounting to . % o annual sales revenueand close to % o the EBIT o the business units in scope.

Key qualitative benets : Standards improved integration and streamliningo company operations.

Ch


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ChococamStandards improving ood sa ety and product quality

The Chococam company (Chocolate Con ectionery Cameroon) began its opera-tions in as part o the Swiss group Barry Callebaut, the world’s number onemanu acturer o bulk chocolate. In August , the majority o Barry Callebautshares were purchased by the Tiger Brands Group, a dynamic brand o packagedconsumer goods operating mainly in South Africa and in some emerging markets.

Company name : Chococam

Country : Cameroon


No. of employees : (o which are temporary and pieceworkers)

Revenues/prots : XAF billion(USD . million)/N.A. (in )*

Main products/services :Con ectionary products, chocolatebars and other products,and chocolate spread

Main use of standards :• Procurement, including inspection

o supplies• Stock management• Production and operations• Maintenance o equipment

• European Commission regulations• European Good Hygiene Practices


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What were the major benets for Chococam of usingstandards ?

Using standards allowed Chococam to :• Improve the detection rate of non-conforming supplies• Deliver products of consistently high quality, resulting in enhanced

customer satisfaction• Reduce costs through more efficient stock management• Optimize operations and manage processes in a systematic manner • Raise staff competencies through training• Reduce maintenance costs for equipment


Introducing the ISO quality management system was core to the benets

generated by standards. It provided Chococam with a systematic approach to man-agement, leading to improvements in fundamental processes such as procurementand the inspection o supplies or a better detection o non-con ormities and anoverall higher quality. The standard urther helped streamline the production pro-cess and provide a clearer denition of staff functions and responsibilities. On this

basis, training was organized to enhance employees’ skills. All these measures havegenerated increased customer satisfaction, higher sales revenues and substantialsavings in stock-keeping and maintenance costs.

Economic benets generated by standards : XAF million (USD . million)

annually ( . % o total annual sales).Key qualitative benets : Standards helped create a culture o qualityconsciousness at all levels o the company.

W t S g l


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Water Senegal Standards supporting a unied approach to management

Founded in December in Senegal’s capital Dakar, Sénégalaise des Eaux ( SDE ),a private limited company, has been instrumental in establishing a viable urbandrinking water system or its country and is the re erence in A rica or drinkingwater services.SDE operates within a “ public-private partnership ” institutional framework, meaningthat the company is bound to government agencies by a performance contract thataims to improve public water services in Senegal and sets the technical and nancial

performance targets to be achieved.

Company name : Water Senegal/Sénégalaise des Eaux (SDE)

Country : SenegalIndustry : National water supply

No. of employees :

Revenues/prots :XOF . billion/N.A.(USD . million/N.A.) (in )*Main products/services :Drinking water services

Main use of standards :Standards were used to streamline

operations in drinking water services.Most important standards used :• ISO : ,Quality

SénégalaiseDes Eaux

• Some Senegalese national standards on water discharge and air pollution

Economic benets generated by standards : XOF . billion (USD . million)


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What were the major benets for SDE of using standards ?

Using standards allowed SDE to :• Establish clear, well-dened links between the company’s strategic directions

and their implementation “ by-process ” and business function, so as tomeet the ambitious performance objectives and promote a culture ofcontinual improvement

• Help satisfy the needs of the Senegalese population for reliable water access(with increased customer satisfaction)

• Improve overall efficiencies in operations• Ensure positive occupational health and safety conditions for SDE’s

employees and suppliers


The introduction of an integrated management system incorporating best practices

from several standards has been key to enabling a systematic approach to manage-ment and laying the foundations for a culture based on continual improvement. The“ public letter of engagement ”, issued by the CEO at the beginning of each year, playsan essential role in setting the company’s key targets and policies and serves as abasis for dening the specic objectives and tasks of each organizational unit. These

are later operationalized through performance indicators which are monitored on amonthly and weekly basis to measure whether progress is taking place as intended.This approach has helped drive process efficiency and identi y opportunities or

g yannually, amounting to . % o annual sales revenue.

Key qualitative benets : Standards helped manage business operations morereliably and efficiently.

Mapei


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MapeiStandards promoting higher quality and pavingthe way or international expansion

Founded in , Mapei was a very small producer of varnishes and waterproongagents. The company later diversied into adhesives or loor and wall coverings,introducing a set o innovative products. Today, the Mapei Group is the world’sleading manufacturer of mortars, adhesives, grouts, sealants, waterproong agents,additives or concrete, and other specialty products or the building industry. TheGroup comprises subsidiaries, main research and development centres, and

production facilities in operation in over countries.

Company name : Mapei

Country : ItalyIndustry : Construction andconstruction materials

No. of employees :

Revenues/prots :

EUR . billion/EUR million(USD . billion/USD . million)(Mapei Group) (in )*

Main products/services :Chemical specialty products or thebuilding industry, such as adhesives,mortars, sealants, varnishes, etc.The assessment ocused on adhesives

or the ceramic loor and wall tiles

Most important standards used :• ISO : ,Quality management systems• ISO : Environmental management systems


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What were the major benets for Mapei of using standards ?

Using standards allowed Mapei to :• Communicate to the market the high value of its products• Sustain its strong international expansion by using consistent management

systems for the transfer of knowledge, good practices and operational procedures• Support a high rate of product innovation


The implementation o an integrated management system based on InternationalStandards ( or quality, sa ety and environmental aspects) has been core to Mapei’sstrategy, helping to structure and harmonize business processes in line with marketgrowth objectives, and combining specic local requirements with knowledge andexperience acquired on a global scale. Product standards (in particular ISO orthe European EN ) and the European CE marking practice have played a largepart in disseminating clear and objective information on the performance of adhesives,

thus paving the way for better-quality products that have considerable user benetsin terms o the ease and speed o installation. This has been extremely benecial toMapei whose primary offer is ocused on high-quality innovative products A key

• ISO : ,Environmental management systems• OHSAS : ,Occupational health and safety management systems• SA ,Social accountability • ISO ,Customer complaints handling• Various EN and ISO standards dening product requirements, testing methods,

etc. (e.g. ISO , EN )

Economic benets generated by standards : EUR . million (USD . million),

amounting to . % o revenue and . % o the EBIT o Mapei Group.Key qualitative benets : Standards contributed to the harmonization omanagement practices and business processes throughout the Group’s subsidiaries.

Baltika Breweries


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Baltika Breweries

The Russian state enterprise Baltika Brewery was established in and privatizedin . Baltika’s vision was to brew the nest-quality European beer using tradi-tional technology. The company began its regional expansion in and mergedwith other breweries, changing its name to Baltika Breweries. It was then acquiredin by the Carlsberg Group (Denmark), one of the world’s largest breweries.Today, Baltika is the Russian Federation’s leading beer brand with a market share of

. % and one of the largest, fastest-moving consumer goods companies in Russia.

Company name : Baltika Breweries

Country : Russian Federation

Industry : Beer production/breweriesNo. of employees :

Revenues/prots :RUB . billion/RUB . billion(USD . billion/USD . million)

(in )*Main products/services :Large port olio o beers(and some non-alcoholic beverages)

Main use of standards :• Procurement• Testing o incoming materials• Production• Distribution

Standards sustaining quality and process efficiencies

• FSSC ,Food safety certication system based on ISO • ISO : ,Customer complaints handling• European Brewery Convention standards ( or malt and beer)


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What were the major benets for Baltika of using standards ?

Using standards allowed Baltika Breweries to :• Increase labour productivity

• Lower purchasing costs for raw materials used in brewing• Decrease its environmental footprint by saving electricity, water and other resources• Build up a reputation as manufacturer of ne beers with a large portfolio of products• Support a wide distribution network with sales outlets throughout the

Russian Federation


The implementation of widely used standards of the European Brewery Conventionenabled Baltika to purchase raw materials on the international market or a lowerprice. This had not been possible be ore when Baltika relied exclusively on GOST standards or procurement. By requesting that their suppliers implement a robustquality management system, Baltika was able to secure supplies o consistentlyhigh quality, which made it possible to reduce the requency o laboratory testingand transfer some of the laboratory staff to other operations.Baltika’s management system, based on ISO andISO , was instrumental

in streamlining processes, integrating acquired companies and optimizing coop-eration between actories, resulting in a signicant increase in labour productiv-ity Standards were also used in the retting o railway wagons needed to deliver

European Brewery Convention standards ( or malt and beer)• Many GOST standards ( or malt and beer, storage, afer-sales service)• Federal regulations or the transport o ood and beverages

Economic benets generated by standards : . % o annual revenue(RUB billion or USD . million).

Key qualitative benets : Standards helped establish efficient high-qualitymanu acturing and product branding as well as an extensive distribution network.

City Square Mall


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City Square Mall

City Square Mall ( CSM ), Singapore’s rst eco-mall, opened in . Developed,owned and managed by City Developments Limited, one o Singapore’s leadinginternational property and hotel conglomerates, CSM is conceived as a miniature“ town centre ” that provides the perfect setting for the community to meet, play andshop while acquiring an eco-learning experience.CSM disposes over m o gross retail space, spread over ve storeys, twobasements and our levels o li estyle services. Hosting around retailers, the

mall offers a wide array of merchandise and services, promotional activities, as wellas street fare and international cuisine.

Company name : City Square Mall

(CSM), SingaporeCountry : Singapore

Industry : Retail – Shopping mall

No. of employees : Several thousand

Revenues/prots : –Main products/services :CSM is a public acility in downtownSingapore providing retail outlets ormany types o goods and services.

Main use of standards :The study ocused on CSM’simplementation o SingaporeStandard SS to reduce the energy

Standards helping to reduce energy consumption

• ISO : ,Quality management systems• ISO : ,Environmental management systems• OHSAS : ,Occupational health and safety management systems


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What were the major benets for City Square Mall of usingstandards ?

UsingSS on energy efficiency in buildings allowed City Square Mall to :• Design and run an eco-efficient mall on signicantly less energy

than traditional malls• Systematically analyse the energy consumption in its buildings

and identify functions that were particularly energy-intensive,such as the air-conditioning equipment


Singapore Standards SS andSS were implemented during the design phaseo the new mall, which was planned as an energy-efficient and eco- riendly envi-ronment attractive to all types o shoppers and amilies. Following the standards’principles and guidelines, high-performing air-handling control, lighting, re safety,mechanical ventilation and elevator systems were integrated into the design, allow-ing for signicant energy savings. An external specialized service provider was hiredto monitor energy use and ensure optimal operation of the air-conditioning system.All h i i i i k Ci S M ll h ll i Si d

p y g y• SS : , Air-conditioning and mechanical ventilation in buildings• ARI (Air-Conditioning and Re rigeration Institute) standards

Economic benets generated by standards : Annual savings o SGD in electricity costs (around USD ).*

Key qualitative benets : Standards have helped set CMS up as an exampleor eco-efficiency, per ormance and cost savings or similar installations

in Singapore and beyond.

Teckwah


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Teckwah

Founded in , Teckwah has evolved rom a manu acturer o plain paper boxesto a leading solutions provider of customized supply chain management services.The company offers a variety of products and services, including the new packagingsolution neupack, business process outsourcing, e-commerce, Web-basedprocurement and ullment click solutions, service-parts logistics and reverselogistics solutions.

Company name : Teckwah IndustrialCorporation Ltd.

Country : Singapore

Industry : Printing and packagingsolutions, logistical services

No. of employees :

Revenues/prots :N.A./SGD . million(N.A./USD million) (EBIT in )*

Main products/services :Wide port olio o packagingsolutions (including special-purpose packaging)

Main use of standards :• Procurement• IT services

Standards building a resilient company

• OHSAS : ,Occupational health and safety management systems• ISO : ,Supply chain security management • ISO - : ,Offset lithographic processes


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What were the major benets for Teckwah of usingstandards ?

Using Singapore Standard SS allowed Teckwah to :• Build organizational resilience by identifying key risks that could lead

to business disruptions• Achieve business continuity by seamlessly transferring internal and external

operational information between Teckwah and its key suppliers and customers

• Ensure continuous supply and flow of raw materials• Secure important contracts as a BCM-certied company through increased

customer condence in Teckwah’s ability to avoid or mitigate impacts fromdisruptive incidents

How did this standard lead to these benets ?

The implementation o the SS standard on business continuity managementstarted with a systematic business impact analysis to identi y potential impactsthat a disruptive incident would have on Teckwah. The company relies heavily onIT services and decided to move its server arm off its premises to a more securephysical location. The data backup frequency was also stepped up from once every

The assessment ocused on the impact o the Singapore Standard SS : ,Business continuity management (BCM).

Economic benets generated by this standard : SGD . million(USD . million) annually, amounting to . % o EBIT.

Key qualitative benets : Standards helped strengthen Teckwah’s and Singapore’scapacity to build a resilient society.

Annex


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Annex

The standards listed below are given with their latest publication year. For the editionapplied in a particular company, please refer to the respective case study.

Full titles o standards re erenced in the case studies

Reference No. Title

ISO : Plastics piping systems for soil and waste discharge (low and high temperature)inside buildings – Unplasticized poly(vinyl chloride) (PVC-U)

ISO : Plastics piping systems for non-pressure underground drainage and sewerage –Unplasticized poly(vinyl chloride) (PVC-U)

ISO - : Microbiology of the food chain – Horizontal method for the enumeration ofmicroorganisms –Part : Colony count at °C by the pour plate technique

ISO - : Microbiology of the food chain – Horizontal method for the enumeration ofmicroorganisms –Part : Colony count at °C by the surface plating technique

ISO : Microbiology of food and animal feeding stuffs – Horizontal method for the detectionof Salmonella spp.

ISO : Flat pallets for intercontinental materials handling – Principal dimensions and tolerancesISO : Microbiology – General guidance for the enumeration of Enterobacteriaceae without

resuscitation – MPN technique and colony-count techniqueISO : Microbiology – General guidance for enumeration of yeasts and moulds – Colony

count technique at °C ISO : Quality management systems – Requirements

ISO : Quality management – Customer satisfaction – Guidelines for complaints handlingin organizationsISO - : Graphic technology – Process control for the production of half-tone colour

separations, proof and production prints –Part : Offset lithographic processesISO series Ceramic tiles – Grouts and adhesivesISO : Environmental management systems – Requirements with guidance for useISO series Plastics piping systems for water supply and for buried and above-ground drainage

and sewerage under pressure – Unplasticized poly(vinyl chloride) (PVC-U)ISO : Food safety management systems – Requirements for any organization in the

food chainISO Specication for security management systems for the supply chain

Reference No. Title

AHRI - Sound rating of non-ducted indoor air-conditioning equipment AHRI - Performance rating of central station air-handling units


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ANSI/AHRI - Performance rating of room fan-coilsBASC - Business Alliance for Secure Commerce Standard BOS Burnt clay masonry units (based on SANS )DIN ENISO : -

Quality management systems – Requirements

EAN International Article Number (originally European Article Number, but now re-named)with a -digit barcode

EN : Adhesives for tiles – Requirements, evaluation of conformity, classication and designationEN series Plastics piping systems for non-pressure underground drainage and sewerage

– Structured-wall piping systems of unplasticized poly(vinyl chloride) (PVC-U), polypropylene (PP) and polyethylene (PE)

Global GAP Version Good Agr

Documents

Benefits of Standards