ECONOMIC BENEFITS

OF STANDARDIZATION
AND EVALUATION
BY
T.V SINGH
HEAD, TRANSPORT ENGINEERING
DEPARTMENT,BIS
 STANDARDIZATION
Activity of establishing, with regard to
actual or potential problems for common
and repeated use, aimed at the
achievement of the optimum degree of
order in a given context.
It consists of the processes of
formulating, issuing and implementing
standards.
 WHAT IS A STANDARD?
Document, established by consensus
and approved by a recognized body,
that provides, for common and repeated
use, rules, guidelines or characteristics
for activities or their results, aimed at
the achievement of the optimum degree
of order in a given context.
 WHAT STANDARDS DO
FOR YOU?
- Provide interchangeability
- Set the recognized level of quality
- Provide framework for mass production
- Incorporate latest results of R&D
- Increase consumer confidence
- Reduce costs
- Provide basis for precise price comparison
- Develop goodwill and prestige for manufacturers
- Create domestic & Export market opportunities
 ECONOMIC BENEFITS
OF STANDARDIZATION
INTERNATIONAL LEVEL
NATIONAL LEVEL

COMPANY LEVEL(ORGANIZATION
LEVEL)
 GENERAL BENEFITS OF
STANDARDIZATION
TO THE TECHNOLOGISTS
Accepted methods and materials for
expediting designs
Facility for introducing improvement in
products and processes
Increased knowledge of properties,
possibilities and application of materials
Guidance for formulation of research
and development programmes.
TO THE MANUFACTURER
Rationalization of processes of manufacture,
Improved control over processes, materials and
labour
Elimination of waste of materials and effort,
Higher rate of production
Reduction of cost of manufacture
Reduction of inventories of stocks, both of raw
materials and products, and
Ultimate increase in sales and hence profits
TO THE CONSUMER
Assurance of quality goods and services
purchased
Better value for money spent
Convenient method for setting disputes with
supplier
TO THE TRADE
Minimization of delays, correspondence and
discussions resulting from inaccurate or
incomplete specifications of the stores ordered
Workable basis for acceptance or rejection of
goods and for dealing with consequential
disputes
 ECONOMIC BENEFITS
OF STANDARDIZATION
STRATEGIC SIGNIFICANCE
ANTICIPATION OF NEW LEGISLATION
REDUCTION IN COSTS
POTENTIAL COMPETITIVE ADVANTAGE
THROUGH COMPANY STANDARDS
THROUGH INSIDER KNOWLEDGE
THROUGH INFLUENCING CONTENTS OF
STANDARDS
 ECONOMIC BENEFITS
OF STANDARDIZATION
ADVANTAGES IN GLOBAL TRADE BY
HARMONIZED INTERNATIONAL STANDARDS
LOWERING OF COSTS
SIMPLIFICATION OF CONTRACTUAL AGREEMENTS
LOWERING TRADE BARRIERS
POSITIVE EFFECTS OF STANDARDS ON FOREIGN TRADE
INDICATIONS OF INNOVATIVE TECHNOLOGICAL
COMPETITIVENESS
IMPROVEMENT IN THE COMPETITIVE CHANCES OF
DOMESTIC SUPPLIERS
COST REDUCTION BY
REDUCTION IN TRANSACTION COSTS
POSITIVE EFFECT ON INTERDEPARTMENTAL
COMMUNICATION
 ECONOMIC BENEFITS
OF STANDARDIZATION
EFFECTON THE SUPPLIER CLIENT
RELATIONSHIP
POSITIVE EFFECT ON BUYING POWERS OF
COMPANIES
WIDER CHOICE OF SUPPLIERS
EXERTION OF MARKET PRESSURE ON
CLIENTS
EFFECT RELATIONSHIP WITH SUPPLIERS
MORE THAN THAT WITH CLIENTS
 ECONOMIC BENEFITS
OF STANDARDIZATION
MACROECONOMIC ANALYSIS
STANDARDS ARE INTERNATIONALLY RESPECTED
STANDARDS MAKE TECHNICAL SPECIFICATIONS
MORE TRANSPARENT
STANDARDS HAVE POSITIVE EFFECT ON EXPORTS
INTERNATIONAL STANDARDS ENCOURAGE TRADE
STANDARDS ENCOURAGE TECHNOLOGY TRANSFER
STANDARDS SHOULD BE CONCENTRATED IN
SECTORS IN WHICH THERE IS THE GREATES
NATIONAL INNOVATION POTENTIAL
 STANDARDIZATION PROJECTS
RESULTING IN TANGIBLE BENEFITS TO
NATIONAL ECONOMY

Meeting Local Conditions and Using of Local

Materials IS 335:1993
Import Substitution IS 650:1991
Conservation of Materials Steel Economy
Programme
Utilization of Waste Material IS 3812:1981
Variety Reduction for Economy in Production
and Distribution IS 1570:1961
Safety IS 6044(Part2):1972
Interchangeability IS IS3238:1965