CATEGORY: PUBLIC EDUCATION
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By S. Gordon

Standards and standardization are fundamental elements of society; it is the foundation stone on which industrial society is built. Standards govern the exchange of goods and services; it can be defined as documents stating the technical information necessary for achieving safety, quality and efficiency. Without standards the whole structure would crumble.

Standards covers every aspect of our lives for e.g. standards for safety, health care, work performance. Most individuals within an organization uses the technique of standardization as part of their routine, from the accountant who chooses a particular method of costing from varying methods available to a caretaker who selects a particular type of floor cleaner from a variety has in effect developed a standard, as well as the purchasing agent who collects a number of order forms and issues them to a single purchase order is practicing standardization.

Standardization involves the process of formulating, issuing and implementation of standards, it is also a management function aimed at coordinating activities of the firm. It comprises of two components in its broadest sense these are:

The process which is an agreement of a solution to a recurring problem and

The practice this is the result of having implemented the process

Businesses use standardization as a means of communicating with customers. Through product specification businesses are in a better position to explain the products available and consumers would have a clearer idea of what they wish to purchase. Thus standards and standardization are important aspects of business activities. Each department has its own specifications which forms part of the end product the company manufacturers.

Most benefits derived from standardization can be classified as economic benefits except in the case where social objectives are targeted for e.g. pollution control. Benefits could be considered at different levels of standardization namely international, national and company, these benefits can be classified as:

- direct and indirect
- tangible and intangible
- short-term and long-term

Regardless of the level, benefits are derived from any standardization project to different sections of the society:

To manufacturers the benefits are:

1. improved control over the process of manufacture
2. higher rate of production
3. reduction in the cost of manufacture
4. reduction in inventories of both raw and products
5. ultimate increase in sales and profits

To consumers the benefits are:

1. assurance of the quality of goods purchased and services received
2. better value for money spent
3. convenience in settling disputes with supplier

And to traders these are:

1. minimizes delays and correspondence resulting from inaccurate or incomplete
specification of materials or products
2. workable basis for acceptance or rejection of goods

Goods and services obtained from other companies account for the largest and most visible cost in most organizations. Purchasing is one area which benefits greatly from standardization. Documented cases from a variety of sources show direct savings in purchasing ranging from 15 – 20% due to planned standardization. Some savings incurred are:

- increase quantity discounts
- improved definition of requirements by use of standards, reduces the number of misunderstanding between purchaser and supplier
- improved delivery times.



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