An Analysis of the Critical Factors of ISO 9001:2000 Management Practices and Customer Satisfaction of the Selected Listed Manufacturing Companies in Sri Lanka

Abstract

This paper analyses the impact of ISO 9001 :2000 management practices on customer satisfaction among the manufacturing companies listed in the Colombo Stock Exchange. The scope of this paper lFas limited to the companies that applied ISO 9001.2000 certifications for at least 3 years until 2007. The International Organizationfor Standardization widely known as ISO is an international-standars-setting body composed of representatives from various national standards organizations. The objective ofthis paper is to assess whether the management practices indicated in the ISO 9001:2000 framework brings about Customer satisfaction as a reduction of the customer complaints among the listed manufacturing companies in Sri Lanka. The management practices included in ISO 9001: 2000 are Management policies. plan and actions: Focus on Customers. Capable employees. Reliable Suppliers, Sound communication System, Steady processes and Consistent quality output. A total of 161 questionnaires were distributed among the 10 listed manufacturing companies targeting managers responsible for quality, production, procurement and other key areas. This paper proves empirically that there is a relationship between the management practices and reduction of the customer complain as a customer satisfaction among the listed manufacturing companies in Sri Lanka and further management practices which introduced by ISO 9001 :2000 reduce the customer complaint, product returns, increase repeat customers, customer loyalty. Finally the management practices of the ISO increase customer satisfaction.