What Is The ISO 9001 Certification Cost- Complete Calculation!
I have seen professionals implementing ISO 9001:2015 from scratch and getting a certificate under 500 dollars. ISO 9001 certification cost calculation is not tricky! But being realistic and implementing truly it can cost a minimum of $15000 and a maximum of $85000. In this article, we are going to breakdown this cost.
Businesses are been done to gain profit unless it is philanthropy. When we discussed the “reasons for the implementation of ISO 9001:2015 standard”, an increase in sales and profitability was one of the reasons.
Imagine if an organization is already earning very less, or in the initial phases of its business how are they going to afford the implementation of ISO 9001:2015? This is why the “cost for ISO 9001 certification” is a point of concern for many who want to bring improvement to their firms, but affordability is also a question for them.
In general, there are mainly few costs associated with ISO 9001:2015 implementation:
- ISO 9001 Standard Cost
- Resources Cost
- Consultancy Charges
- Training Cost
- Documentation Cost
ISO 9001 Standard Cost
If you are going to implement ISO 9001:2015 you have to buy an ISO Standard. Which is later used for study, development of documents, development of training material, etc.
There might be pirated versions available somewhere, but it is always ethical to purchase one for better quality.
When you purchase the ISO 9001:2015 standard than to understand it usually you need training. Training is mandatory if you are not aware of this standard previously or if you don’t have prior experience of implementation of any standard. Here you can buy my ISO 9001 Course which I have designed for the beginner level.
Consultancy fee / ISO 9001 consultant cost
Companies can also decide to hire a consultant. A “consultant” is usually a person who has the knowledge, skills, and experience for the implementation of the standard. They charge some amount which is usually based on their skills and experience. However, their fee usually varies depending on their experience and expertise.
ISO 9001:2015 implementation include many documents, procedure, and records. These documents can vary as per the industry. However, some of them are common in all industries like:
- quality policy
- context of the organization, interested parties, internal-external issues, risk management, risk assessment sheet
- job description, organogram, competency chart
- purchase order, supplier evaluation, and re-evaluation forms approved supplier list
- production orders
- a customer complaint form, customer feedback survey forms
- internal audit plan, internal audit checklist, internal audit report
- management review meeting minutes, SWOT Analysis Worksheet
- change request, maintenance request, preventive maintenance plan, breakdown maintenance request and form, Corrective & Preventive Action Plan Form
- Training plan, training attendance sheet, trainer evaluation, training feedback, etc.
Various competent provide these documents and forms in editable templates which you can buy, download and then edit as per your industry requirement. This has a cost.
Companies despite buying the documents, or outsourcing this process to a consultant may hire a permanent resource who have prior experience of working on ISO standard. This cost is difficult to predict and estimate.
In this case, they have to bear the salary expense of hiring that experienced individual which can vary according to the:
- Skills and expertise
- Industrial experience
- Certifications accomplished
It can be dependent on the country’s laws as well. So in the west and developed countries, it is on the higher side but in underdeveloped countries, this is low.
ISO 9001 Registrar Cost
Last but not the least, perhaps this is the most important, as you can avoid all other costs mentioned in this article but you can never avoid this is “ISO 9001 registrar cost”. Because to get certified you have to get the certificate through a registrar, a registrar is an approved body that can issue the certificate on behalf of the accreditation body. Options can be SGS, Bureau VERITAS, URS, TUV Austria, and many more.
Some certification bodies charge higher than others due to their reputation and goodwill in the market.
Cost of ISO certification:
|Buy ISO 9001 standard
|$ 100 – 200
|ISO 9001 training / lead auditor certification course / cost
|$ 550 – ISO 9001 certification cost for individuals
|Hire a consultant – outsource
|$ 2500 – 3000 (can be more)
|Hire a resource – in-house resource
|Depends on the country. For US $60,000 to $80,000 per annum & for most Asian countries it is $ 12000 per annum.
|ISO 9001 registrar cost
|Usually $ 2500 – 4000
|$ 17000 to 85000
These are the maximum and overly exaggerated estimates. Don’t worry by seeing these high numbers because in my decade of experience I have seen companies getting certified in as low as roughly $500 per month.
Variables of costing of ISO 9001:
Apart from all the above calculations these costs are variable and the variables are dependent on the following questions:
- What is the structure of the company
- Number of processes happening in the company
- How dangerous is the work / the risks associated with it
- How much the company is already prepared
- Number of permanent staff and contractual staff
- How well the company is maintained, how rich is the existing management system
- Type of industry
- Number of companies that are going to be certified if it is a group of companies
- How many man-days / are required to audit this firm
In conclusion, when organizations decide to implement ISO 9001 they must keep in mind the challenges they face while implementing this QMS standard. “Cost” is a big factor in decision-making. And the cost can vary depending on the existing condition of the company. So before taking any step, keep all these factors in mind and then go for it. Whatever you can do, always remember without knowledge you can’t do much, so always consider completing an ISO 9001 course before making a move.