Q UA LI T Y S YST E M

S TA N DA R D S I N T H E
CANADIAN FOOD AND
B EV E R AG E I N DUST RY
SUKESHA MEHTA, REX PAK LTD.
ANNE WILCOCK, UNIVERSITY OF GUELPH

The competitive arena of the food industry is becoming global due to
new international trade agreements, improved communication and
transportation, and changing consumer preferences. In order to suc-
ceed in this global market, companies must make attention to quality
a priority. One way of doing this is to use a quality system.
In this study, qualitative research was undertaken to determine
the perceptions and experiences of selected Canadian food and bever-
age manufacturers regarding quality system standards. Quality
managers of 10 Canadian food manufacturing companies, six regis-
tered to quality management standard ISO 9002 and four not reg-
istered to any standard, were interviewed. From the interviews, it
was discovered that respondents from registered companies found the
standards to be flexible and accommodating, while those from non-
registered companies perceived the standards to be rigid and unable
to meet their specific needs. While respondents from registered com-
panies expressed the importance of the standards to their customers,
some respondents from nonregistered companies thought the stan-
dards were not important to their customers. Registered companies
tended to place less importance on the monetary payback and more
importance on the internal benefits of using the standards than did
nonregistered companies.
Respondents from both registered and nonregistered companies
agreed on the importance of the standards in international trade
and quality improvement, but all respondents indicated that the
standards were difficult to interpret. More research, both qualitative
and quantitative, is required to determine the value of the ISO 9000
standards in the food industry.
Key words: Good Manufacturing Practices (GMPs), Hazard
Analysis Critical Control Point (HAACP), ISO 9000.
INTRODUCTION
Competitiveness, defined by the Agri-Food Competitiveness
Council as the sustained ability to profitably gain and
maintain market share, is becoming increasingly important
for Canada’s agri-food industries (Agriculture and Agri-
Food Canada 1994). The competitive arena of the food
industry is becoming global due to improved communica-
tion and transportation, less parochial tastes and preferences
of consumers, and changes in the policy and regulatory
environment brought about by legislation such as the
Canada–U.S. Trade Agreement (CUSTA). The slow
growth in demand for food products in Canada, the increas-
ing influence of large retailers and buying groups, and the
influx of global competitors mean that a firm’s increases in
sales revenues will likely occur from changes in market
share rather than increases in aggregate demand or prices.
Of foremost importance in competing in global and
domestic markets is the ability to sustain both a cost and
a quality advantage. Many aspects of the cost and quality
of Canadian food products are either directly or indirectly
impacted by government regulations, such as supply
management and the Food and Drug Act and Regulations.
Some economists believe that many of the functions of

72 QMJ 96 4, no. 1
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY

government in regulating food costs and quality should QUALITY AND QUALITY SYSTEMS
be internalized by a quality strategy in manufacturing
The internationally accepted definition of quality is the
companies (Golomski 1985). This would reduce the high
totality of features and characteristics of a product or ser-
social costs of regulation, increase competitiveness, and
vice that bear on its ability to satisfy stated or implied needs
alleviate the problem of regulation incompatibilities
(Standards Council of Canada 1993). In short, quality is
between Canada and other countries.
defined by the customer. For example, food quality may
Removal of market intervention is becoming com-
mean more than just taste. Depending on the customer,
pulsory with international trade agreements such as the
quality may involve nutrition, safety, convenience, variety,
first round of the General Agreement on Tariffs and
and/or environmentally friendly packaging. Moreover,
Trade and the North American Free Trade Agreement.
customer demands are rapidly changing as consumers
These have caused the reduction of import tariffs and
become more informed about nutrition and safety issues,
the elimination of import quotas that protected many
the ethnic population of markets changes, and consumer
Canadian markets. These agreements will force food
preferences are altered. The first task in producing quality
companies to depend on their internal assets to remain
products is to understand these consumer demands.
competitive. Company assets may include such factors
Knowing customer needs is only the first step; ensuring
as employee attitudes, partnerships with customers and
that these needs are met is crucial to a company’s survival.
suppliers, innovation, cost advantages, marketing
This requires the use of a quality system, defined as the
strengths, and human resources. Food in Canada lists
organization, structure, responsibilities, procedures,
quality management as the top technique or technology
processes, and resources for ensuring quality. A quality
for enhancing competitiveness in the food industry
system involves two main features: quality policies, usually
(Wilson 1991a).
documented in a quality manual; and documented proce-
Many industries have heralded the use of quality
dures to ensure that these policies are maintained.
system standards, particularly the ISO 9000 series, as the
key competitive tool of the decade and a prerequisite for
HACCP and GMPs
doing business (Schnoll 1993). These standards, however,
have yet to make inroads into the Canadian food indus- The most commonly used quality systems in the food
try. Industrialists are concerned about the necessity of the industry are Good Manufacturing Practices (GMPs) and
standards in light of existing regulation and the ability of Hazard Analysis Critical Control Point (HACCP) systems.
the standards to provide a competitive advantage for food For many years, GMPs have been applied within organiza-
companies. There are, however, no scientific data avail- tions for the assurance of quality in such areas as food, drugs,
able to document usage of the standards in the food medical devices, cosmetics, processed goods, and laboratory
industry. In this study, qualitative methods were used protocol. In fact, GMPs form the basis of most modern
to explore perceptions of selected food manufacturers quality systems (Puri 1995). GMPs are the minimum
regarding the ISO 9000 standards and other quality tech- requirements for operating a food production facility in
niques in the food industry, and to determine topics for Canada and include those activities that ensure that the
further research. environment, equipment, personnel, and processes provide

QMJ 96 4, no. 1 73
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
conditions conducive to the production of safe, accept-
able foods that are free of contamination. These activities
include the construction and maintenance of the building
and surroundings, including water sources and waste dis-
posal; equipment maintenance; personnel training; sani-
tation and pest control; manufacturing controls; receiving,
storage, handling, and transportation; maintenance of
traceability and recall procedures; and preparation of
records to support all of these activities. All Canadian
food companies are inspected by either Health Canada or
Agriculture and Agri-Food Canada, with the frequency
of inspection determined by the type of product and
whether the shipment requires crossing provincial bor-
ders. The actual standards to which companies must
adhere are a collection of federal acts and regulations that
prescribe requirements for many of the listed activities. In
many cases, however, acceptability is at the discretion of
the government inspector.
In 1994, the Health Protection Branch of Health
Canada proposed a new division to the Food and Drug
Act and Regulations, which detailed requirements for
GMPs. Agriculture Canada produced a similar document
known as HACCP Prerequisites. Neither set of requirements
has been legislated, but the documents serve as guidelines
both to companies and to government inspectors in
implementing and auditing GMPs.
The HACCP system is specifically used to control
food safety. The HACCP concept was developed by
Pillsbury in the 1960s to support U.S. space efforts to
ensure a higher degree of safety than that provided by fin-
ished product testing. HACCP has since attained world-
wide acceptance as the food safety system of the future.
HACCP programs involve implementing the fol-
lowing seven basic principles.
1. Identifying all potential physical, chemical, or biologi-
cal hazards that may occur in any step in the production
74 QMJ 96 4, no. 1
of a food product from harvest through its ultimate
consumption
2. Determining critical control points (CCPs), those
process control points where loss of control will result
in an unacceptable food safety hazard that will not be
reduced or eliminated by subsequent processing steps
3. Establishing critical limits that must be met to ensure
that each critical processing step is under control
4. Monitoring CCPs by on-line personnel to ensure that
processes are under control
5. Establishing deviation procedures for processes that
fall outside the critical limits
6. Establishing verification procedures such as product
testing to ensure that the HACCP plan is working
7. Documenting the procedures and records that support
principles 1 to 6
With the recent increase in food safety issues, gov-
ernments have begun to mandate the application of
HACCP programs in food processing plants, institu-
tions, and restaurants (Wasik 1994a). Governments see
HACCP as a low-cost and effective alternative to tradi-
tional inspection programs, since HACCP allows resources
to be allocated to higher-risk areas. Agriculture and
Agri-Food Canada has developed the Food Safety
Enhancement Program (FSEP), which is HACCP-based,
and fish processing in Canada follow a government-
required, HACCP-based quality management program
mandated by the Department of Oceans and Fisheries.
Many Canadian food processors currently use
HACCP systems on some or all of their product lines.
Although no data have been published that quantify the
benefits in terms of operational or financial performance,
food processors that use an HACCP program may benefit
from a greater degree of control over food safety, which
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
may lead to fewer recalls, less rework and scrap, and
fewer lawsuits (Agriculture and Agri-Food Canada 1993).
The emphasis of both GMPs and HACCP is on the
product rather than the system. According to Puri (1995),
“They are process/product control systems rather than
quality management systems.” The primary concern
addressed by these systems is consumer health and safety.
As such, GMPs and HACCP do not provide any strategic
dimensions of quality and cannot be used as competitive
tools (George Morris Centre 1992).
Total Quality Management
Competitive aspects of quality, such as product image, fla-
vor attributes, and customer satisfaction, can be addressed
by a total quality management (TQM) system. TQM has
been likened to a culture. It relies heavily on employee
involvement, and it involves a continuous improvement
philosophy based on using statistical methods.
Some TQM concepts have been implemented by
Canadian food companies to remain competitive and to
improve product quality and labor-management relations
(Wilson 1991b). Results of TQM implementation range
from diversification of product lines in response to cus-
tomer needs, improved productivity, and increased return
on investment, to improved employee relations, reduced
absenteeism rates, and reduced employee turnover
(Sterling 1985). Not all TQM programs, however, suc-
ceed. McKinsey and Company, one of the largest U.S.
management consulting firms, reported that more than
half of its clients’ TQM programs have stalled or failed
for various reasons (George Morris Centre 1993). The
TQM implementation process is lengthy and involves a
high initial investment. TQM success is defined in terms
of process improvements instead of operating results; thus,
increased costs may not result in corresponding revenue
growth. Success is also highly dependent on management
commitment, which may be difficult to achieve if there is a
lack of understanding of TQM concepts or if management
personnel feel that their jobs are threatened (Wasik 1994b).
Quality System Standards
Perhaps the greatest problem with TQM is the fact that
there is no outside party audit of the quality system or
standard to which the system must comply (Eilers 1992).
The fact that a supplier says it uses TQM conveys noth-
ing concrete about the company’s quality efforts. A quality
system standard, however, contains guidelines that may
be implemented within an organization and verified by
auditors. Such a standard can guide a company in imple-
menting an appropriate quality system so that some of
the problems with TQM can be avoided; it can allow a
company to demonstrate the existence of such a system
to clients and regulators; and a standard can make it pos-
sible to ensure that suppliers and others affiliated with
the operation of the company have appropriate quality
systems of their own. This last benefit is of great value to
any company that must source quality raw inputs to
ensure consistent and superior final products.
Many food companies currently monitor the quality
of their raw material by operating their own vendor certi-
fication programs. Such programs generally provide cus-
tomers with some cost savings in terms of fewer defects in
raw material and a better customer-supplier relationship;
however, the initial certification process and the annual
recertification audits are costly and time-consuming for
both the company and its suppliers. Some suppliers are
audited or inspected many times each year by various cus-
tomers and government agencies, resulting in substantial
time losses for the company. When vendors are certified to
a standard, the vendor company bears the cost of a single
certification program, and an impartial third party bears
the responsibility for auditing.
QMJ 96 4, no. 1 75
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
During the past 25 years, many countries have
developed their own quality system standards. In the
1970s, the Canadian Standards Association published a
series of standards known as the Z299 series. In Britain,
the British Standards Institute developed the BS 5750
series. Likewise, other companies and countries devel-
oped their own standards, which could be enforced in
contracts with suppliers. As the role of international trade
grew, companies felt the need for a set of standards that
would be globally recognized. This need was met by the
ISO 9000 series, which was first published in 1987.
Since then, more than 90 countries have adopted the
series as national standards (Scicchitano 1995b). There
are currently more than 120,000 worldwide registrations
to ISO 9001, ISO 9002, and ISO 9003 in many diverse
industries from banks and schools to national defense
and electronics (Caillibot 1996). This number is rapidly
increasing. Only about 1945 of these registrations are in
Canada; and most occurred between 1993 and 1995, per-
haps indicating that the standard is becoming more popular
(Scicchitano 1995b).
ISO 9000 in the Food Industry
Only a small percentage of the total ISO 9000 registra-
tions in the world are for companies in the food industry.
The food industry in Europe, particularly in Britain, has
strongly adopted the standard especially for food equip-
ment and packaging materials (Golomski 1994). The
first food processing company to become registered, Lyons
Tetley, received its registration in 1986. Since then, many
more have become registered, including the U.K. sites of
H.J. Heinz, Kellogg’s, Pepsico, and Cadbury. In most
cases, food companies in Britain have become registered
in an effort to improve internal operating systems rather
than as a response to customer requirements or competi-
tive pressures (Bon appetit 1995). These companies
76 QMJ 96 4, no. 1
implemented ISO 9000 and HACCP procedures in an
integrated approach to meet regulatory requirements for
due diligence in manufacturing. Commercial pressure for
registration is mounting, however, as several of the large
food retailers in Britain have indicated that they expect
suppliers to use a quality management system and recom-
mend the ISO 9000 series (Bon appetit 1995). This pres-
sure should be considered by food companies in other parts
of the world that plan to export grocery products to Britain.
In New Zealand and Australia, compliance to ISO
9000 is widespread throughout the food industry.
Virtually all of New Zealand’s meat and dairy processors
are registered (Burn 1995). Quality concerns are becom-
ing paramount in these markets.
In Canada, only 17 food companies are currently
registered to an ISO 9000 standard (Scicchitano 1995a),
mostly ISO 9002. Canadian ISO 9000 registrars and
consultants suggest that registration will spread rapidly in
the food industry, particularly within certain industry
sectors (Burn 1995). It has been suggested that regis-
tration may come first to food equipment and food pack-
aging manufacturers. This is expected to be followed by
manufacturers of food ingredients such as additives,
flavors, and colors. Raw materials will probably come
next because the trade of agricultural commodities is
highly regulated and involves much international negoti-
ation. Processed food manufacturers may lag due to the
size of their export markets and the difficulty in nego-
tiating trade agreements (Golomski 1994). For some
sectors, such as sugar refining, ISO 9000 registration
could become a nontariff trade barrier for Canadian
exporters, fueling the spread of registrations in these sectors
(Burn 1995). The interest of Canadian food processors
in ISO 9000 is increasing, as shown by the soaring atten-
dance at registrar- and consultant-sponsored seminars
(Burn 1995).
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
Food companies that have implemented ISO 9000
standards have reported many benefits. One of the greatest
benefits reported was improved discipline and organiza-
tion. For example, Buckingham Foods, one of the largest
sandwich-making operations in the U.K., used ISO 9002
to turn sandwich making into a scientific process.
Ingredients, preparation methods, product weights,
traceability, appearance, and packaging are all specified
and controlled by the quality management system (Bon
appetit 1995). Other food companies have reported ben-
efits including financial returns, customer satisfaction of
products and sales service, simplified training procedures,
and better control over safety and hygiene (Burn 1995;
Bon appetit 1995). John Axon, owner of the first farm
registered to an ISO 9000 standard, found the standard
invaluable in monitoring the health of his livestock.
Despite these favorable experiences of food companies
with ISO 9000, and the fact that TQM has been so widely
adopted by the food industry, ISO 9000 registration has
not yet made large inroads into the Canadian food industry.
This apparent lack of interest in ISO 9000 may be due to
many factors, such as the high cost of registration, the
absence of competitive pressure, and/or the perceived
adequacy of existing regulations or quality programs in
achieving product quality. No scientific data exist in the lit-
erature, however, to document these and other perceptions
of food company personnel with regard to the standards.
The purpose of this research was (1) to explore the
attitudes of quality managers in food companies toward
ISO 9000 and their experiences with the quality systems
used in the food industry; and (2) to determine what spe-
cific areas, if any, require further research.
METHODOLOGY
The methods used in this research were designed to dis-
cover the perceptions of Canadian food manufacturers
regarding quality system standards. Because of the
exploratory nature of the research and the small number
of registrations in the Canadian food industry to date,
qualitative research in the form of depth interviews
was appropriate.
The Sample
The sample for this research included 10 Canadian food
manufacturing companies. Six of these companies were
registered to an ISO 9000 standard. The list of registered
companies was compiled from the Directory of QMI
Registered Companies ( January 1995) and was supple-
mented by information from trade journals in which
companies had advertised their registrations. The six
companies were selected to represent a broad range of
food and beverage product categories. For convenience,
the list was restricted to companies in Ontario and Quebec.
The other four companies included in the sample were
not registered to an ISO 9000 standard. An attempt was
made to match these companies with registered companies.
Three of the nonregistered companies were similar in
SIC code, company size, and sales volume to registered
companies included in the sample. The fourth company
was a close match in company size and sales volume to
several of the registered companies. Nonregistered com-
panies were chosen from Ontario for convenient access.
The names of these companies were obtained from either
Ontario Manufacturers 1995 or through personal contacts.
Data Collection and Analysis
Depth interviews with quality managers from the sample
companies were used to collect data. This method
enabled the researcher to elicit expertise and experience
that are unique to the respondent, by probing more
deeply in specific areas of interest (Brenner, Brown, and
Canter 1985).
QMJ 96 4, no. 1 77
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
In each company in the sample, the interview
respondent was chosen by contacting the company and
asking to speak with the person in charge of quality
assurance. Company managers in all six of the registered
companies that were contacted agreed to participate in
the project. Of the 12 nonregistered companies that were
contacted, four agreed to participate in the project. The
interview followed a prepared outline for discussion and
was tape-recorded and transcribed for analysis. To ensure
that the interview questions were useful and easily under-
stood, an interview pretest was conducted with the quality
assurance manager of a food company that was in the
process of obtaining ISO 9000 registration, and minor
revisions to the questions were made.
Two separate, but very similar, discussion outlines
were used in this study, one for the registered companies
and one for the nonregistered companies in the sample
(see Figures 1 and 2). The questions were derived from
major themes in the literature. Each outline for discus-
sion was divided into four parts. Part & was identical for
both groups and was used to characterize the sample
company. Part && of the interview characterized the quality
system currently in use in the company, including any
government-imposed quality regulations. Part &&& was
different for the two groups in the sample. For nonregis-
tered companies, opinions about the impact of the stan-
dards were obtained as well as perceived advantages and
disadvantages of implementing quality system standards.
For registered companies, this section also included the
implementation of the ISO standards, including reasons
for implementing the standards, problem areas, compati-
bility with existing regulations, and benefits. The impact
of the standards on productivity and profitability was also
addressed. Part &* of the interview, for both groups, was
used to elicit overall perceptions about ISO 9000 for the
food industry. This included such topics as the utility and
78 QMJ 96 4, no. 1
future directions of the standards. The respondents were
asked to propose a role for ISO 9000 in the food industry.
Qualitative content analysis was used to examine the
interview transcripts. This involves scrutinizing the data
for recurrent words, themes, or concepts; looking for
relationships; and synthesizing information to arrive at a
conclusion (McCracken 1988). Eighteen categories were
selected based on the research questions being investigated,
relevant theories in the literature, and the text being
coded. Several conclusions were drawn.
RESULTS
The 18 categories derived from thematic content analysis
were organized into five groups: (1) quality systems in
food companies, (2) experiences of quality managers with
quality system standards, (3) benefits of the standards,
(4) problems associated with the standards, and (5) percep-
tions of quality managers toward the standards. The 10
companies included in this analysis are characterized in
Table 1. For purposes of confidentiality, the food prod-
ucts produced by companies in the sample were not
included in the table.
Quality Systems in Food Companies
Importance of quality All ten of the respondents
agreed on the extreme importance of quality to their cus-
tomers and their companies. In most of the companies,
quality was the number-one priority.
All we have is our name, and that name can’t be
subjected to anything but absolute perfection in
quality.
Quality is everything. It’s a food item, and it is
expected to be safe and good tasting.
Several of the respondents indicated that customer
demands for quality are increasing, but one respondent
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
Figure 1 Discussion outline for nonregistered companies.
Introduction
The general purpose of this interview is to gather information about business practices of
Canadian food manufacturers. I would like to ask you a series of questions about your
quality system and quality-related activities. Please feel free to answer any questions
at length, as your cooperation will help to give a more complete picture of the role of
quality in the Canadian food industry. Your answers will be used in summary form. The
aim is to gather general information about quality systems, not to single out the practices
of any one company. You are not required to answer all questions.
Could I please get your permission in writing to tape-record the interview?
(Make sure that form is completed)
As I begin the tape I would like to ask you a few questions about yourself and the
company for which you work.
Part I: Characterization of the Respondent and Company
a) What is your name? Position?
How long have you been with this company? In this position?
Have you previously held a similar position? Please describe.
b) What is the company’s name?
How long has the company been in business?
What type of business does the company do?
— Products manufactured? Percentage breakdown?
—Activities? (Research, product development, manufacturing, distribution)
How many people does the company employ?
What is the company’s estimated annual sales?
Does the company operate in domestic and/or export markets?
— Percentage breakdown?
—To what countries does the company export?
Is the company Canadian owned?
—Where is the parent company located?
— Does the company have any sister companies in Canada?
Who are the company’s customers?
— Processors, food service, wholesalers, distributors, retailers, consumers
—Percentage breakdown?
Who are the company’s suppliers?
— Producers, primary processors, ingredients manufacturers
Part II: Characterization of the Company’s Quality System (Nonregistered companies)
a) How important is quality to your customers?
—What kind of demands do your customers have?
b) Could you please describe the system used in your company to ensure quality?
Does your company use Good Manufacturing Practices?
— How are they implemented in your company?
Does your company use an HACCP system?
— How is it implemented in your company?
Is there an overall corporate quality program that your company must follow?
Does your company adhere to any other quality regulation?
— Please describe.
d) Who in your company is responsible for quality?
How are the financial and human resources for your quality system allocated?
How is your quality system maintained?
— Documentation? How is documentation controlled?
— Quality manual; that is, development, contents, updating?
— Support; that is, management?
Do you have a supplier certification program? Describe.
— If no, how do you judge the quality of purchased products?
Do you have a system for product traceability? Describe.
Do you maintain written quality records? Describe.
How is employee training monitored?
— Could you describe employee training for all your employees?
— Office staff, floor managers, production, etc.
Do you have a system to correct and prevent quality problems?
Do you have a system to inspect and test your product?
— How is the test status indicated?
— How do you ensure that test equipment is calibrated?
How do you verify that your quality system is working?
— Internal audits?
e) What are the benefits of your quality system?
— How effective is it? Recalls, scrap, rework, time, inspections
What are the drawbacks?
What percentage of your total revenues go to maintaining your quality system?
What are the estimated savings resulting from your quality system?
f) Do you perceive a need for additional quality programs?
—Why or why not? Which programs are needed?
What is the role of quality systems in your company’s business plan?
Part III: Perceptions of Quality System Standards (Nonregistered companies)
a) Are you familiar with the term quality system standards?
— If no, a quality system standard contains guidelines for ensuring quality that
can be implemented within an organization and verified by auditors.
Do you perceive a need for quality system standards in your company?
What do you perceive as advantages to using quality system standards?
What do you perceive as disadvantages to using quality system standards?
b) Are you aware of the ISO 9000 standards?
What impact do you believe these standards have on your company?
— On your customers?
— On your export opportunities?
What do you perceive as advantages to using the ISO 9000 standards?
What do you perceive as disadvantages to using the ISO 9000 standards?
Would you expect that using the ISO 9000 standards would impact your
— Productivity?
— Profitability?
— Competitiveness?
Part IV: Industrywide Consequences of ISO 9000
a) In your opinion, why are the ISO 9000 standards used less in the food industry
than in other industries in Canada?
In your opinion, will ISO 9000 registrations increase substantially in the Canadian
food industry?
Should registration become mandated?
—Are the standards necessary in light of existing regulation and quality systems
in the food industry?
In your opinion, will registration become mandated?
— If yes, when? By whom?
b) Would a written document to guide companies in the application of ISO 9000
to the food industry be useful in implementing the standard?
Would such a document promote use of the standard in the food industry?
Which parts of the standard require specific guidance for use in the food industry?
Should variations of the ISO 9000 standards be provided for specific industry and
business sectors?
c) In your opinion, will the standards become necessary to compete
— Globally?
— Internationally?
— Domestically? (Given free trade)
Will they pose nontariff trade barriers?
Will they assist or hinder trade?
e) Do you feel that new product development should be guided by your quality
management system?
— Is this achieved by the ISO 9000 standards?
What areas of new product development should be included?
— Sensory elements? Licensing procedures? Others?
f) Which sectors of the food industry can benefit the most from use of the standards?
Which sectors of the food industry may benefit the least from use of the standards?
g) Propose a role for ISO 9000 in the Canadian food industry.
h) This is the end of the prepared questions. Are there any other points that you think
should be included or do you have any other comments to make?
Thank you very much for your time and cooperation.
QMJ 96 4, no. 1 79
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
Figure 2 Discussion outline for registered companies.
Introduction
The general purpose of this interview is to gather information about business practices of
Canadian food manufacturers. I would like to ask you a series of questions about your
quality system and quality-related activities. Please feel free to answer any questions
at length, as your cooperation will help to give a more complete picture of the role of
quality in the Canadian food industry. Your answers will be used in summary form. The
aim is to gather general information about quality systems, not to single out the prac-
tices of any one company. You are not required to answer all questions.
Could I please get your permission in writing to tape-record the interview?
(Make sure that form is completed)
As I begin the tape I would like to ask you a few questions about yourself and the
company for which you work.
Part I: Characterization of the Respondent and Company
a) What is your name? Position?
How long have you been with this company? In this position?
Have you previously held a similar position? Please describe.
b) What is the company’s name?
How long has the company been in business?
What type of business does the company do?
— Products manufactured? Percentage breakdown?
—Activities? (Research, product development, manufacturing, distribution)
How many people does the company employ?
What is the company’s estimated annual sales?
Does the company operate in domestic and/or export markets?
— Percentage breakdown?
—To what countries does the company export?
Is the company Canadian owned?
—Where is the parent company located?
— Does the company have any sister companies in Canada?
Who are the company’s customers?
— Processors, food service, wholesalers, distributors, retailers, consumers
— Percentage breakdown?
Who are the company’s suppliers?
— Producers, primary processors, ingredients manufacturers
Part II: Description of the Company’s Quality System (Registered companies)
a) How important is quality to your customers?
—What kind of demands do your customers have?
b) Could you please describe the system used in your company to ensure quality?
Does your company use Good Manufacturing Practices?
— How are they implemented in your company?
Does your company use an HACCP system?
— How is it implemented in your company?
Is there an overall corporate quality program that your company must follow?
Does your company adhere to any other quality regulation?
— Please describe.
d) Who in your company is responsible for quality?
How are the financial and human resources for your quality system allocated?
How is your quality system maintained?
— Documentation? How is documentation controlled?
— Quality manual; that is, development, contents, updating?
— Support; that is, management?
Do you have a supplier certification program? Describe.
— If no, how do you judge the quality of purchased products?
Could you describe your system for product traceability?
How do you maintain written quality records?
How is employee training monitored?
— Could you describe employee training for all your employees?
— Office staff, floor managers, production, etc.
Do you have a system to correct and prevent quality problems?
Do you have a system to inspect and test your product?
— How is the test status indicated?
— How do you ensure that test equipment is calibrated?
How do you verify that your quality system is working?
— Internal audits?
e) What percentage of your total revenues go to maintaining your quality system?
What are the estimated savings resulting from your quality system?
f) What is the role of quality systems in your company’s business plan?
Part III: Experiences with Quality System Standards (Registered companies)
a) Why did your company decide to implement quality system standards?
Which standard did you choose? How did you choose it? Why?
80 QMJ 96 4, no. 1
b) When did you attain registration to the standard?
Which registrar did you contact?
Did you receive registration for your plant alone, or as part of a corporation?
From where did you and others in your company receive training on ISO 9000?
Did you seek the assistance of an external consultant or other agency in interpreting
or implementing the standard?
Is there an active union in your company?
c) How long did it take to implement the standard and to obtain registration?
Who was involved in the implementation process?
Please describe the implementation process.
—What kind of system did you have prior to implementing the standard?
—What changes needed to be made?
—What problems did you encounter during implementation?
Please describe the registration process.
—What problems did you have attaining registration; that is, nonconformances?
What were the implementation and registration costs?
d) Did you have any problems interpreting the standards? Explain.
Did you use any guidance documents to assist in implementing the standards?
What concerns did people in the company have about the standards?
— Floor workers, management, office staff, etc.
Were any of the needs of your company not covered by the standard?
If you could make changes to the standard, what would you change?
e) Are the ISO 9000 standards compatible with other quality systems commonly used
in the food industry?
— GMPs?
— HACCP?
—TQM?
What are the overlaps?
Do you use any other quality systems in conjunction with ISO 9000?
f) Do you demand registration of your suppliers?
Do your customers demand registration of you?
g) How has using ISO 9000 standards impacted your
— Productivity; that is, in terms of recalls, scrap, rework, time, inspections?
— Profitability?
— Competitiveness?
What are the benefits of using the standards?
What are the drawbacks?
Do the benefits of registration exceed the drawbacks, overall?
Part IV: Industrywide Consequences of ISO 9000
a) In your opinion, why are the ISO 9000 standards used less in the food industry
than in other industries in Canada?
In your opinion, will ISO 9000 registrations increase substantially in the Canadian
food industry?
Should registration become mandated?
— Are the standards necessary in light of existing regulation and quality systems
in the food industry?
In your opinion, will registration become mandated?
— If yes, when? By whom?
b) Would a written document to guide companies in the application of ISO 9000 to
the food industry be useful in implementing the standard?
Would such a document promote use of the standard in the food industry?
Which parts of the standard require specific guidance for use in the food industry?
Should variations of the ISO 9000 standards be provided for specific industry and
business sectors?
c) In your opinion, will the standards become necessary to compete
— Globally?
— Internationally?
— Domestically? (Given free trade)
Will they pose nontariff trade barriers?
Will they assist or hinder trade?
e) Do you feel that new product development should be guided by your quality man-
agement system?
Is this achieved by the ISO 9000 standards?
What areas of new product development should be included?
— Sensory elements? Licensing procedures? Others?
f) Which sectors of the food industry can benefit the most from use of the standards?
Which sectors of the food industry may benefit the least from use of the standards?
g) Propose a role for ISO 9000 in the Canadian food industry.
h) This is the end of the prepared questions. Are there any other points that you think
should be included or do you have any other comments to make?
Thank you very much for your time and cooperation.
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY

Table 1 Characterization of participant companies.

OWNER REGISTRATION
COMPANY RESPONDENT EMPLOYEES MARKETS NATIONALITY CUSTOMERS SUPPLIERS STANDARD DATE

1 Quality assurance 150 Canadian United States Retail Raw processors ISO 9002:1987 November 1994
manager

2 Technical 70 Canadian, some British/Dutch Industrial Primary producers/ ISO 9002:1987 November 1994
superintendent United States raw processors

3 Quality assurance 300 Export (United Canadian Industrial Primary producers ISO 9002:1987 November 1994
manager Kingdom, Europe)

4 Quality assurance 450 Canadian and Swiss Industrial Raw processors ISO 9002:1987 August 1994
director United States

5 Quality assurance 300 Canadian, some Canadian Retail/ Primary producers/ ISO 9002:1987 May 1994
advisor export (England, industrial raw processors
Japan)

6 Quality assurance 250 Canadian, some British/Dutch Retail/ Raw processors ISO 9002:1994 March 1995
manager United States industrial

7 Quality control 400 Canadian, some Belgium Government Raw processors

manager United States

8 Quality assurance 550 Canadian, some Canadian Retail/

manager export (Mexico, industrial Raw processors
Middle East)

9 300 Canadian and Canadian Industrial Primary producers

Production and export (United States,
quality control Japan, Singapore,
coordinator Malaysia)

10 Quality assurance 400 Canadian and United States Retail/ Primary producers/
manager United States food service raw processors

noted that meeting customer demands requires first
understanding what the customer means by quality. Once
quality is achieved, several respondents acknowledged, it can
be an important selling point for the company’s products.
Quality is one way you can differentiate your
product from your competitors’; it’s our biggest sell-
ing point.
Description of quality systems While six of the com-
panies involved in this study are registered to the quality
system standard ISO 9002, each of these companies
included different features in its quality system.
Interestingly, the four companies that are not registered
to ISO 9002 also included many of those same quality
system features.
The quality systems in each of the companies
registered to ISO 9000 were all formally documented
according to the requirements of the standard. They all
followed the four-tier format of policies, procedures,
work instructions, and forms and records. Two of the
nonregistered companies had thoroughly documented
quality systems of their own; but in two other companies,
although they had their own quality systems, the respon-
dents acknowledged that their documentation was less
comprehensive than the ISO standard requires.
Most of the companies involved in this study had
HACCP systems or were in the process of implementing
them. In four companies, two registered and two nonregis-
tered, HACCP was deemed inapplicable to their products
or processes. One company, which was not registered to

QMJ 96 4, no. 1 81
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
ISO 9000, used HACCP as its core quality system, as
mandated by its corporate office. In some registered com-
panies, ISO documentation overlapped with HACCP
documentation, and in others, the ISO system encompassed
HACCP. GMPs were used by all of the companies, in
some cases incorporated into the ISO programs of the
registered companies. The inclusion of HACCP or
GMPs in an ISO system was voluntary on the part of
registered companies.
Several companies, both registered and nonregis-
tered, also used such quality concepts as continuous qual-
ity improvement (CQI), TQM, and problem-solving
groups. Other regulations incorporated into the quality
systems of various companies, depending on the products
being produced, included American Baking Institute
and Canadian Grain Commission standards, Health
Protection Branch and Agriculture Canada regulations,
internal company specifications, and corporate and cus-
tomer policy and specifications. Most of the respondents
from registered companies noted the flexibility of the
ISO standards in allowing the specific quality system
requirements of the company to be included. One company
actually added 10 elements (not specified) to the required
20 in the ISO standard to complete the company’s
quality system.
Nine of the companies involved in this study had
supplier qualification programs, some more advanced
than others. These ranged from checklists to actual certi-
fication procedures. Some companies conducted on-site
supplier audits and some used mail-out questionnaires. In
some companies, the rigidity of supplier qualification
depended on the ingredient being supplied. Suppliers of
ingredients that were critical to the safety of the product
required more rigorous audits than those that supplied
ingredients that had little effect on the product. In all
cases, the existence and type of supplier qualification sys-
82 QMJ 96 4, no. 1
tem used was not related to whether or not the company
was registered.
All of the companies had extensive traceability systems
and recall procedures. These usually involved traceability
of raw materials by lot number, intermediate products by
batch number, and finished products by day code. The
exact system was dependent on the type of operation
carried out at that plant. One nonregistered company actu-
ally conducted monthly mock recalls to ensure that its
traceability system was working.
All of the companies maintained written quality
records and employee training files, and all had extensive
procedures to ensure proper training. Again, training
procedures were specific to the company’s process. The
registered companies conducted training according to
detailed written work instructions that formed part of
their ISO 9000 documentation, giving these companies
a measure of control over training not expressed by
nonregistered companies.
All of the respondents indicated that the function of
the quality assurance department was to maintain the
quality system as opposed to actual product inspection, a
quality control function. In the ISO 9000–registered
companies, quality system maintenance and verification
involved auditing, review procedures, and customer com-
plaint follow-ups. In most of the nonregistered companies,
there was more reliance on customer response and product
testing for adherence to specifications as methods to verify
that quality systems were working.
All of the registered companies were heavily involved
in auditing. Most of them audited for compliance to
GMPs as well as their quality systems, involving all
departments in the company such as manufacturing, pur-
chasing, sales, and human resources. Auditing ensures
that the system is working correctly, brings to light
potential problem areas, and enables the quality assurance
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
department to discover the cause of any quality problem
that may have already occurred. One nonregistered com-
pany, which designed its quality system on the basis of
ISO 9000 and HACCP, also had a comprehensive audit-
ing system. Another nonregistered company had a quality
system based entirely on a very sophisticated HACCP
system, of which one feature was a thorough HACCP
audit. HACCP auditing does not, however, encompass
administrative processes. The other two nonregistered
companies had no formal audit systems.
All of the ISO 9000–registered companies had docu-
mented systems to correct quality problems as required by
the ISO 9000 standard. In one nonregistered company,
correction was covered by a HACCP system that covers
only safety problems. Product quality problems were
resolved in this company by final product inspection, but
process nonconformances were not addressed at all. In
two other nonregistered companies, no system to correct
quality problems existed as such, but the companies
relied on employee involvement and initiative to solve
quality problems.
In all of the companies, both registered and nonreg-
istered, employee involvement and responsibility for
quality were stressed. Some respondents mentioned that
employees had the authority to make quality decisions
such as stopping a line or segregating suspect product. In
most of the companies, the respondents described situa-
tions in which the employees worked in problem-solving
groups to take charge of their workplace environment
and to improve company processes. Most respondents also
stressed the need to continuously improve their systems.
We aim for zero defects; we try not to relax and get
comfortable because that’s how companies fall
behind.
You have to be continuously dissatisfied with the
status quo and that’s how you get better.
Reasons for implementing quality system standards
In four of the six companies registered to ISO 9000, the
decision to use quality system standards was at least
partially customer driven.
Certification is one way to guarantee our quality to
our customers.
Our customers could not guarantee they would
be working with us down the road if we were not
certified.
Three respondents were of the opinion that within
five to ten years, companies will be required to be regis-
tered in order to stay in business; however, several
respondents in nonregistered companies said that their
customers were not demanding registration.
Surprisingly, about four or five years ago, some of
our customers were saying we have to go ISO, but
now those same companies are saying have your
documentation in place, but we are not going to
demand that you get certified. Customers are real-
izing that ISO doesn’t necessarily mean you are
going to ship quality product.
In two other nonregistered companies, registration
was not deemed necessary because the customer was the
ultimate consumer, and the respondents did not expect
consumers to see value in the companies being registered.
In several of the registered companies, ISO registra-
tion was a corporate mandate and in several others it was
being pushed by the company CEO or president.
Although some of the respondents in nonregistered com-
panies saw value in adopting an ISO system, top man-
agement support was lacking so the project could not
be undertaken.
Several respondents from registered companies indi-
cated that the ISO 9000 standards were adopted for the
internal benefits to their quality systems and companies.
QMJ 96 4, no. 1 83
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
We recognized the opportunity to tie a number of
very good programs together into a comprehensive
system that would greatly reduce our overhead,
allow us in a very systematic way to focus on our
quality, and give us an opportunity to improve.
Nonregistered companies, however, had not embarked on
the registration process because their own systems seemed
to be working well. Respondents planned to improve on
these systems rather than adopt the ISO system.
Respondents in registered companies also cited
prestige as a reason for registration.
This was one way to ensure that we were the best
in the world.
Part of our mission was to be of an international
caliber.
Several respondents also stated that they recognized
the need for standardization in the food industry, which
could be provided by ISO 9000. Cost was a deterrent to
most nonregistered companies in this study, especially
because they were not sure whether there would be
a payback.
Experiences with Quality
System Standards
Implementing the standard The first step in imple-
menting the ISO 9000 standard is to ensure top manage-
ment commitment. Because of the amount of time and
resources required, all of the respondents from companies
registered to ISO 9000 indicated that the project could
only succeed with top management support. Most com-
panies set aside a brief planning stage before beginning
the implementation. This involved selecting a registrar,
preferably one with experience in the food industry and
worldwide recognition. Several respondents mentioned
the importance of being compatible with a registrar, as
84 QMJ 96 4, no. 1
not all registrars work the same way. In some companies,
the planning stage involved a diagnostic or gap analysis
to determine what was needed to meet the standard.
Most companies formed teams to lead the project, and
these were composed of representatives from top man-
agement and each department.
Three of the companies involved in this study hired
consultants with ISO 9000 experience to assist with the
implementation of the standard.
It is not a small undertaking. If you want the pro-
ject to succeed, you have to hire a consultant, you
have to push the project.
The other three companies handled the project with their
own personnel.
We felt that if we were to do it on our own, in the
end we would get a firmer grasp and a clearer
understanding of the requirements of the standard.
No one knows our system better than ourselves.
The longest part of the implementation process for
all of the companies was the document preparation.
Several companies said that changes to their ISO docu-
ments were still being made. In most companies, the
policies and procedures were written by the core ISO
team, but the work instructions were written by the
employees themselves. This was not an easy task for the
companies, as some employees were illiterate or did not
understand the language used in the company’s docu-
mentation. Also, it was difficult in many companies to
acheive agreement between operators working in the
same job function, perhaps on different shifts. This stage
of ISO implementation required a long time and many
revisions to complete; however, the process gave employees
a sense of ownership, decreased their fear of the system,
and ensured that what was written was actually what
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
was being done. Once the documentation was complete,
it was submitted to the registrar for review.
Training was another major component of the
implementation process. In most companies, a few repre-
sentatives were trained through courses with the registrar,
seminars, or visits to a registered sister company. These
representatives then trained the management and
employees in their company.
Each company then performed an internal audit to
ensure that its system was working. Finally, the registrar
was contacted to perform an external audit and to grant
registration.
Registration process Although many of the regis-
tered companies had sister companies in Canada, the
United States, or abroad, all of the registrations were
site-specific. The registration procedure was reported to
be similar for each company, regardless of the registrar
chosen. Basically, the process consisted of submitting
an application to the registrar indicating which of the
ISO standards the company intended to use, submitting
the company’s manuals to be reviewed, and having
the company’s facilities audited. The on-site audit by
the registrar was reported by three respondents to be
very detailed, requiring two to three auditors for two
to three days, depending on the size of the operation
being audited.
This was the toughest audit I have ever been
through.
The auditors are very highly qualified. They know
where to look and what to do.
Because the audit is so extensive, most respondents
expected a few problems to be found.
I think 70 percent of companies that go for regis-
tration have some major nonconformance on the
first audit.
Of the companies involved in this study, one had no
nonconformances, three had minor nonconformances,
and two had major nonconformances to correct.
Nonconformances delayed registration for between a few
days and one month, after which the auditor verified that
the problems had been corrected and granted registra-
tion. In only one case was a second audit required to
ensure that corrections had been made.
Several of the respondents were involved in prepar-
ing for the company’s first surveillance audit, required
every six months to ensure ongoing compliance with the
standard, and one company had already completed its
first surveillance audit. Because the 1994 revisions of the
standards were recently published, several companies
were in the process of upgrading their systems to meet
the new standard before their next surveillance audit.
Most respondents supported the revisions. They agreed
with the changes to the standards and were in favor of a
system that requires continual upgrading.
Major changes required to attain registration The
major change required of all registered companies’
quality systems was documentation. Several respondents
indicated that most of the systems required by ISO
existed, but they were not documented; many things
were done verbally. For example, one respondent men-
tioned that nonconformances and corrective actions were
previously not documented and training records were
fragmented. The ISO requirements called for a more
controlled system, involving formalized training,
improved process and document control, and manage-
ment review meetings.
Most of what was required by ISO was in place.
What is usually lacking is that final 20 percent,
which is not covered, which ISO does not accept.
With ISO everything must be done the way it is
written, without exception.
QMJ 96 4, no. 1 85
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
Compatibility with existing quality systems None of
the respondents reported any conflict between the ISO
9000 standards and preexisting quality programs in
the company.
Every food company has elements of ISO; using the
standard just finalizes and completes their quality
system so that their customers know the company
has all the elements and they are all documented.
Three of the companies continued to use CQI
programs after registration to an ISO standard, which
respondents said were very compatible. CQI in these
companies increased employee awareness of quality
and made them more receptive to quality tools such as
ISO 9000.
All of the respondents indicated that ISO 9000 and
HACCP were not only compatible, but also supported
each other. The two systems have several elements in
common, but also cover different aspects of quality assur-
ance. HACCP deals with the specific needs of food com-
panies, in terms of safety and process control, while ISO
provides the structure and documentation to support
HACCP and covers management areas with which
HACCP is not involved.
If you look in Europe now, they have their ISO
and they are working on HACCP; in North
America, we have our HACCP and we are work-
ing on ISO. I do believe that these two concepts
have to merge together one day, perhaps with the
next ISO revisions.
Benefits of the ISO 9000 Standards
Respondents in both registered and nonregistered com-
panies agreed that the ISO 9000 series standards have
some very definite benefits, and those in registered compa-
nies all stated that the benefits outweighed the drawbacks.
Because the benefits were reported to be so numerous,
86 QMJ 96 4, no. 1
they are grouped here as competitive benefits, productivity
benefits, and internal benefits.
Competitive benefits All of the respondents, in both
registered and nonregistered companies, perceived com-
petitive benefits from being registered to an ISO 9000
standard. Most respondents indicated that their cus-
tomers were happy with their ISO system and that it
gave confidence and peace of mind to their customers.
The ultimate benefit was a further guarantee of
quality to our customers.
Customer visits to inspect the facilities of at least
two companies decreased.
Before we were certified to ISO 9002, we often
had our customers visiting us and making recom-
mendations. Now that we are certified, our cus-
tomers come here to see how we work and learn
from us. Now part of our customer service is pro-
viding expertise in quality assurance.
Several respondents stated that their customers were
giving them more business. Registered companies were
also able to expand their business into new markets.
Registration opened doors to Europe and other areas of
the world and gave registered companies an advantage
over their competitors. Some respondents claimed that
their companies now used both product quality and their
quality systems as marketing tools.
Productivity benefits Most respondents in registered
companies were unable to offer specific evidence of an
increase in productivity since ISO registration, perhaps
because the registrations were all so recent. Both regis-
tered and nonregistered companies, however, expected
productivity to be impacted by using the standard.
Respondents reported improvements in their companies’
procedures, increased production efficiency, reductions in
scrap and rework, and fewer customer complaints.
Improved productivity was attributed to the simplified
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
and easier work instructions and greater consistency that
resulted from ISO documentation. Using the ISO system
was also reported to speed up administrative work and
the training of new employees, which could now be done
with written work instructions.
Internal benefits Perhaps the most important benefits,
according to respondents of registered companies, were
apparent in the internal improvements in the company.
Interestingly, some of the nonregistered companies were
unaware that the ISO system would provide any internal
benefits. The system provides documented control over
the company’s procedures. Respondents said the assur-
ance that things were being done right gave them peace
of mind. They found that the system provided a very
structured method of evaluating the company to indicate
areas for improvement. Respondents also stated that it
increased awareness of quality in the company because
the contribution of each employee to quality is clear,
regardless of the individual’s particular job. Because
employees are involved in writing their work instructions,
they take ownership of the procedures. Employees
become confident that what they are doing is right. The
system eliminates ambiguity and uncertainty about what
is being done in the company and leads to a more disci-
plined process. In such a system, respondents noticed
that fewer problems arose and more time was available to
all employees to continue improving their processes.
Problems Associated with the
ISO 9000 Standards
Several respondents acknowledged that the standards,
while they have their definite benefits and are constantly
being improved, are not perfect. Essentially, at least
five major problems or drawbacks associated with the
standards were perceived by both the registered and non-
registered companies.
Employee acceptance The first problem, cited by all
six registered companies, was employee and staff accep-
tance of the ISO 9000 system. All respondents reported
that there was an initial resistance to the system indicated
by worry, fear, or skepticism. Unions in several of the
companies were concerned about the potential loss of
jobs, although job loss related to ISO implementation did
not occur in any of the companies. These fears disap-
peared after ISO 9000 training was given to all employees,
especially in companies where employees wrote their own
work instructions. One company started an internal jour-
nal to keep employees informed about the progress of
ISO implementation. Involvement and awareness seemed
to be the keys to ensuring employee acceptance of the
new quality system.
Interpretation In most of the registered companies,
the respondents indicated that they had difficulty inter-
preting the ISO standards. Respondents complained that
the standards were vague, ambiguous, and read like legal
documents. Most respondents turned to the assistance of
their consultants or registrars in interpreting the stan-
dards. The supplementary material that is included in the
standards was also useful, and several respondents who
were in the process of upgrading to the 1994 version of
the standards thought this version was clearer than the
1987 version.
There seems to be a general lack of good published
documentation on the standards, especially pertaining
to the food industry. All of the registered companies
expressed a need for such documentation to guide
companies in the implementation of the standards, to
translate the standards into “food words,” and to assist
companies that cannot afford or choose not to hire a
consultant. Because the food industry is so diverse,
however, one respondent was skeptical that such a docu-
ment could be produced. One solution would be for
QMJ 96 4, no. 1 87
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
the International Organization for Standardization
to produce variations of the standards for specific indus-
try sectors. Some respondents indicated that such varia-
tions would make the standard easier to implement, but
a lot of work would be needed before revisions of the
standards could reach that point. Other respondents
thought the standards were flexible enough in their cur-
rent state and valued the commonality provided by
generic standards.
Generic nature of the standards One drawback of the
standards, noted by both registered and nonregistered
companies, is their generic nature.
Technically speaking, you can meet all the require-
ments of the standard and still manufacture product
which is substandard in the eyes of your customer.
Because the standard is generic, it doesn’t address
such things as product specifications.
One of the difficulties with standard or generic
programs is that they teach you to document what
you want to do and what you actually do, but they
don’t identify what should be done. There is a
weakness there.
As one respondent pointed out, however, for a docu-
ment that is used in 100 different countries and covers
any type of product, it is a good system overall, and it is
constantly being improved. Also, being a management
standard, it is not within its scope to provide product
specifications. Another respondent pointed out that com-
panies that invest so much time and money in an ISO
system probably take it seriously and want to do the best
for their customers, and so are unlikely to settle for a sub-
standard product.
The role of the registrar The registration system came
into question by several respondents.
The system is driven by registrars instead of industry
and customer needs, as it should be.
88 QMJ 96 4, no. 1
The fact that accreditation of the registrars is not cur-
rently internationally standardized detracts from the
credibility of a company’s ISO registration. Respondents
of both registered and nonregistered companies would
like to see international standardization of the registrars
to ensure that they do not pay a large amount of money
for a registration that is not internationally recognized.
Currently, a company can ensure that its registration is
recognized by the country with which it is trading by
achieving registration with a registrar that holds memo-
randa of understanding with registrars in these other
countries. Some respondents would prefer a tighter con-
trol over registration by a third party.
Costs The fifth drawback of the ISO 9000 system is the
cost, cited by several nonregistered companies as a deter-
rent to pursuing registration. Resources for quality system
needs in most companies were allocated by an annual
budget. In most companies, this budget covered equip-
ment, supplies, personnel, and training; however, in some
companies these expenses were shared by a corporate
head office. Most respondents said the resources were
adequate for maintaining their quality system, and money
was available on request, as long as it was justified; how-
ever, several nonregistered companies said resources for
improving their quality systems were difficult to attain.
Respondents reported costs for implementing ISO
9000 at between $50,000 and $300,000 Canadian
($35,000 to $200,000 U.S.). This included salaries, train-
ing, and registrar audits. The cost of maintaining the sys-
tem was difficult for most respondents to estimate
because the costs are indirect.
People are paid X amount and one component of
that goes to the quality system.
Respondents in both registered and nonregistered
companies had an equally difficult time calculating the
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
savings resulting from their quality systems, although
several of the larger companies suggested savings of
$1.5 to $2 million dollars Canadian ($1 to $1.3 million
U.S.) since the quality system was adopted. Most com-
panies recognized that the benefits of using the ISO
standards may not be primarily monetary.
The ISO system is extremely time-consuming
and costly because you have to assign resources to it
and it’s not a good rate of return. (nonregistered
company)
I do not believe that a company should try to find
too much justification in money. If a company
wants to see what the payback will be from an ISO
system before going into it, they won’t do it. (regis-
tered company)
Perceptions of Quality Managers
about the ISO 9000 Standards
Perceived deterrents to ISO 9000 registration The
ISO 9000 standards are used less in the food industry
than they are in other industries (Burn 1995).
Respondents in both registered and nonregistered com-
panies suggested reasons for this. Several respondents
perceived that compliance to the standard may be more
difficult for food companies than it is for companies in
other industries because of the diverse product line pro-
duced by most food manufacturers and the subjective
nature of food products.
A lot of what we do in the food industry is subjec-
tive. You are dealing with a food product; it’s based
on taste, on consumer perceptions of quality.
Because of that, you don’t have hard and fast guide-
lines with which to structure your quality system.
Several other respondents suggested that food man-
ufacturers may not be as eager to attain registration
as companies in other industries because food manu-
facturers are not under as much pressure from their cus-
tomers to do so. Respondents in nonregistered companies
indicated that most industrial customers were satisfied
with the quality systems already being used by their
suppliers, and retail customers and consumers were not
concerned about quality systems. Many respondents
from registered companies stated that their customers
were beginning to request ISO registration, and they
definitely required their suppliers to have some of the
ISO elements.
Respondents from both registered and nonregistered
companies suggested that it was the nature of the food
industry to lag behind other industries.
I used to say in the food business, we invented
quality control. We were probably the first people
to invent doing tests and things like that and
unfortunately we were so advanced that we stayed
at the inspection level and forgot to improve with
time. Besides, we have a lot of government regula-
tion, so food companies don’t have to do much. We
have inspectors coming in doing quality control for
us; the government makes all the specifications.
Whereas, in other industries, they had to do it on
their own, so they improved with time and eventu-
ally ended up with quality assurance systems more
elaborate than what we had.
One respondent from a nonregistered company sug-
gested that food manufacturers may be concerned about a
breach in confidentiality by submitting their documents
for review by a third-party auditor. This perception could
deter companies from pursuing registration.
Expected future for the ISO 9000 standards Despite
all these deterrents, respondents in both registered and
nonregistered companies expected ISO registrations in
the Canadian food industry to increase, perhaps slowly, as
HACCP will take precedence.
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 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
I would say that since we are becoming a more
global community, we will have to adopt the stan-
dards that businesses in other countries use.
Respondents expected this increase to occur first
among raw material manufacturers or larger companies,
especially those that deal with European customers. Small
family-run operations were not expected to become regis-
tered in the near future because they would not have the
resources to achieve registration or the exposure to require
it. Some respondents did not expect producers in the agri-
cultural sector to pursue registration; however, most respon-
dents in both registered and nonregistered companies
expected that any company would benefit from registration.
Most respondents also expected registration to an
ISO standard to become necessary in order for compa-
nies to succeed in the future and definitely to expand into
new markets.
Registration to an internationally recognized stan-
dard, I think, will become a requirement of doing
business on a global scale.
I don’t think it’s just an export requirement. It’s a
cost to establish quality with each individual cus-
tomer; whether your customer is in Vancouver or
Germany, it’s the same.
Proposed role for the ISO 9000 standards Most
respondents from both registered and nonregistered com-
panies agreed that the ISO 9000 standards should not be
mandated for the food industry through government leg-
islation. Respondents felt that legislating the standards
would be inappropriate because they do not meet all the
requirements of the food industry. Also, legislating the
standards would be detrimental to small companies.
Most respondents agreed that the market would dictate
use of the standards as part of doing business.
The standards, however, have a role to play in the
Canadian food industry, according to most respondents.
90 QMJ 96 4, no. 1
The standards provide guidelines and controls against
which companies can gauge their suppliers. The stan-
dards provide a tool to ensure product consistency that
other food regulations may not achieve. The standards
provide portability between food companies, so that
customers and suppliers have a greater understanding
of each others’ operations. Finally, the standards assist
in trade with other countries by establishing a level
playing field.
In the future, several respondents from registered
companies hope to see Canadian government inspectors
use the standard when performing audits.
Mass inspection the way they are doing it is really
expensive. The old sampling system doesn’t work
any more.
With GMPs you can see a place is clean, but I
think it is more important to see if there is a clean-
ing schedule and work instructions on how to clean
equipment. That will guarantee that it is going to
be clean all the time.
SUMMARY
Because of the limitations inherent in the methods used
in this research, most notably the small sample size, no
conclusions can be drawn that generalize about the entire
Canadian food industry. Several major themes, however,
can be derived from the research results, which provide
valuable insight into the perceptions of food manufacturers
about the ISO 9000 standards.
Several major inconsistencies between the views of
respondents from companies registered to an ISO 9000
standard and those from nonregistered companies were
revealed by content analysis. One major gap was in the
way in which respondents viewed ISO 9000 quality sys-
tems. Respondents from registered companies viewed
their ISO 9000 system as their own system, which met
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
all their quality system requirements and incorporated all
the programs they used to ensure quality while also meet-
ing all the requirements of the ISO 9000 standard.
Respondents from nonregistered companies tended to
consider the ISO system as separate from the system they
already used. Thus, while respondents from registered
companies viewed the standard as flexible and accommo-
dating of their specific needs, those from nonregistered
companies viewed the standard as rigid and often unable
to meet all their needs. These views led respondents from
nonregistered companies to compare ISO 9000 to the
systems that they already used such as HACCP, whereas
those from registered companies realized that they did
not need to give up any of their own systems in order to
adopt ISO, so no comparison was necessary.
Another major difference between respondents of
registered and nonregistered companies was their views
of the documentation necessary to achieve ISO 9000 reg-
istration. Although all of the respondents agreed that
their original systems fell short of the ISO requirement
for documentation, the respondents from registered com-
panies saw this as an important gap and realized that it
would benefit them greatly to fill it. Respondents from
nonregistered companies considered their lack of docu-
mentation a minor problem and did not expect major
benefits if they were to improve it.
A discrepancy was apparent between the opinion of
respondents of registered and nonregistered companies
about the importance of the standards to their customers.
Respondents of registered companies all stated that one
of the advantages of using the standards was the ability to
demonstrate their quality systems to their customers,
whether they were industrial or retail, domestic or export
customers. Respondents in nonregistered companies did
not expect their customers to see value in their quality sys-
tems, especially if they were retail or domestic customers.
Perhaps one of the most striking differences between
respondents from registered and nonregistered companies
was the importance they placed on the payback from
using the standards. Quality managers from registered
companies stressed that the internal benefits were enough
justification for the cost and did not feel that calculating
monetary savings was important. Most respondents from
nonregistered companies did not expect substantial inter-
nal benefits in their companies from using the standards
and were more concerned about what rate of return they
would realize.
Respondents from registered companies expected
the ISO standards to take on a very important role in
the food industry, with ISO registrations greatly affect-
ing their markets in the future. Respondents of non-
registered companies expected the ISO standards to
have a much less important role, restricted to quality
improvement guidelines.
Respondents from both registered and nonregistered
companies agreed that the ISO 9000 standards were
difficult to interpret and not specific enough to the food
industry. Both types of respondents also agreed on
the usefulness of the standards in global trade and
quality improvement.
It is clear from this research that more work is neces-
sary to establish the value of ISO standards in food com-
panies before managers will endorse the expensive and
time-consuming registration process. This could be
achieved by further qualitative work to investigate the
internal benefits to a company of using the standards or
by quantitative studies to estimate the monetary payback
from using the standards. Competitive advantages to
using the standards can be assessed by qualitative studies
to evaluate the effect of the standards on customer satis-
faction. Work should also be undertaken to demonstrate
how the standards can accommodate the specific needs of
QMJ 96 4, no. 1 91
 QUALITY SYSTEM S TANDARDS IN THE CANADIAN FOOD AND BEVERAGE INDUSTRY
food companies, including HACCP and GMPs. Perhaps
such future work will lead to an increased role for the
standards in the Canadian food industry, as predicted by
several respondents in this study.
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Sukesha Mehta is an HACCP coordinator at Rex Pak Ltd. She earned a

master’s degree in food safety and quality assurance at the University of
Guelph. Mehta may be contacted at 116 Skyway Avenue, Toronto, ON
M9W 4Y9, Canada; 416-674-8230, Fax 416-674-8234.
Anne Wilcock is an associate professor at the University of Guelph. She
earned a doctorate degree at Purdue University. Wilcock may be contacted
at the University of Guelph, College of Family and Consumer Studies,
Department of Consumer Studies, Guelph, ON N1G 2W1, Canada; 519-
824-4120.

QMJ 96 4, no. 1 93