Economic benefits of standard in SME laundry equipment producer using ISO methodology.

The application of standards has been widely applied by companies or organizations including SMEs (Small and Medium Enterprises). Most of them are aware of the standard benefits for organizations, even though their perception of benefits and level of awareness vary greatly. The purpose of this study was to assess the economic benefits of implementing standards in SMEs using ISO Methodology. This research was conducted in SME laundry equipment producer, located in Yogyakarta, Indonesia. Data on the economic benefits of applying standards are obtained from the interview process with experts (supervisors) in each business function and the owner of the SME. Application of standards at SME provides an economic benefit of IDR 262,012,040. SME also receives other benefits from the application of intangible (non-quantifiable) standards in aspect of 1) Inbound Logistics, 2) HRD, 3) Marketing, and Sales and 4) Management and administration. Benefits in the inbound logistics aspect is the logistics flow is more neatly arranged. Benefits in the HRD aspect include training costs being 80% UMR (Minimum Wage). Benefits in the marketing and sales aspects is that process becomes 2 to 3 times easier when explaining to prospective customers. Benefits are also obtained in the management and administration aspects where customer complaints are reduced drastically. [ABSTRACT FROM AUTHOR]