Industry experts establish standards after series of scientific research and experiments to ensure the production of high-quality goods that assure the safety of consumption along with having an emphasis on the optimum utilisation of resources at minimal input costs. Standards exist in every industry across all industrial processes. There are many standards such as ASTM standards, ISO standards, ASME standards, etc. to provide the right guidance to business units. There are many disadvantages of not following industry standards to conduct your business operations. Therefore, business organisations should opt for industry standards to do their industrial activities.
The disadvantages of not following industry standards are as follows:
Wastage of resources:
Standards help to differentiate between the productive and unproductive business activities. The absence of standards benchmarks for utilisation of resources leads to the wastage of scarce and precious resources of an organisation. Having business processes that are driven by industry standards leads to the optimum utilisation of resources in the most prolific manner
The lack of standards leads to unproductive business activities and wastage of resources that increase the input costs during a variety of business operations.High manufacturing costs leave a narrow scope for leveraging good profit margin, and hence, the organisation continually struggles with low profitability in its business operations.
Industry standards provide real-time case studies and industry insights that can guide the administration to make effective business decisions. In the absence of such profound business information managers will work by following trials and errors approach that may or may not be productive.
Slow business growth:
Businesses that do not follow industry standards do not enjoy the trust of customers, partners and suppliers. In such condition, it becomes challenging to accelerate business growth at a fast pace. Additionally, such business houses find it challenging to access international markets that have strict norms for trading only in goods which are manufactured by following globally acceptable standards.
Organisations that do not follow industry standards in the production process struggle to maintain good quality in production output. Such a below-standard production process leads to the production of low-quality goods that are not safe and reliable for prolong usage by consumers.
Organisations can get more information about the variety of industry standards from the annual book of ASTM standards. This book contains information about more than 12000 industry standards.