Manufacturers are facing growing pressure to improve efficiency while managing rising costs, labor shortages, and ongoing supply chain disruptions. Efficiency is no longer a competitive advantage; it is a requirement. Artificial intelligence (AI) is emerging as a practical and scalable solution that helps manufacturers increase profitability without fundamentally changing how they operate.

Rather than replacing people or demanding major capital investments, AI enhances decision-making, reduces waste, and helps organizations get more value from their existing equipment, data, and workforce. As AI adoption accelerates, manufacturers are also recognizing the importance of responsible, well-governed AI systems, an area increasingly addressed through standards such as ISO/IEC 42001, the international AI management system standard.

AI’s Real Value: Optimizing Existing Operations

One of the biggest misconceptions about AI is that it requires new machines or a full digital transformation. In reality, many manufacturers achieve meaningful gains by applying AI to improve current workflows and processes.

By analyzing production data, machine performance, and operational trends, AI uncovers inefficiencies that are difficult to identify manually. Small changes driven by these insights can lead to significant improvements in output, reliability, and margin, while still aligning with governance frameworks like ISO/IEC 42001 to ensure transparency, accountability, and risk management.

Impact of AI-Driven Optimization

Operational Area	Performance Before AI	Performance After AI
Capacity utilization	Production capacity underused due to inefficient scheduling	Capacity increased through optimized workflows and sequencing
Unplanned downtime	Frequent interruptions from equipment failures	Downtime reduced through predictive insights
Quality inspections	Labor-intensive manual inspections	Faster, more consistent automated inspections
Production throughput	Output growth constrained	Increased throughput without adding equipment

Where AI Delivers the Greatest Impact

AI creates value across both the shop floor and support functions by improving visibility, accuracy, and responsiveness. When deployed responsibly and governed effectively, AI systems can enhance performance while reducing operational and compliance risks.

Key Manufacturing Use Cases for AI

Area of Operations	How AI Helps	Business Impact
Predictive maintenance	Identifies early signs of equipment failure	Fewer breakdowns and lower maintenance costs
Quality control	Detects defects using vision and pattern recognition	Reduced scrap and rework
Production planning	Adjusts schedules based on real-time conditions	Improved on-time delivery
Inventory management	Forecasts demand and material usage	Reduced excess inventory
Finance and administration	Automates data processing and validation	Lower manual effort and fewer errors

Driving Profitability Without Increasing Headcount

As labor availability becomes more constrained, manufacturers are seeking ways to grow without increasing headcount. AI supports this goal by capturing operational knowledge and embedding it into systems and processes.

Instead of relying solely on experienced workers to identify issues or optimize production, AI provides consistent, data-backed recommendations. This enables less-experienced employees to perform at a higher level while maintaining consistency across shifts and locations, an outcome that aligns well with ISO/IEC 42001’s emphasis on reliability, oversight, and controlled AI usage.

Workforce and Productivity Benefits

Challenge	Traditional Approach	AI-Enabled Approach
Labor shortages	Hire more staff or accept lower output	Increase productivity with existing teams
Knowledge gaps	Dependence on experienced employees	Insights embedded into systems
Inconsistent performance	Varies by shift or location	Standardized, data-driven decisions
Training time	Long ramp-up periods	Faster learning with AI guidance

Addressing Challenges Before Scaling AI

While AI offers significant benefits, successful adoption requires planning, governance, and alignment across the organization. This is where structured management systems, such as ISO/IEC 42001, play a critical role in helping organizations manage risk, data integrity, and accountability.

Common AI Adoption Challenges and Solutions

Challenge	Why It Matters	How Manufacturers Can Address It
Data quality	AI relies on accurate, consistent data	Clean and standardized data sources
Change management	Teams may resist new technology	Training and clear communication
Security and governance	Sensitive data must be protected	Strong controls and policies
Integration complexity	Systems may not easily connect	Start with targeted, high-impact use cases

A Practical Path to AI Adoption

Manufacturers do not need to deploy AI across the entire organization at once. A phased approach reduces risk and builds confidence, while ensuring AI systems remain aligned with organizational objectives and compliance expectations.

AI Adoption Roadmap

Stage	Focus	Outcome
Foundation	Prepare data and identify priority areas	Readiness for AI deployment
Pilot	Apply AI to a single process	Measurable proof of value
Expansion	Extend AI insights across teams	Broader operational improvements
Continuous improvement	Refine and scale AI initiatives	Long-term efficiency gains

The Bottom Line

AI is no longer an emerging concept in manufacturing, it is a practical tool delivering real improvements in efficiency, quality, and profitability. By focusing on optimization rather than disruption, manufacturers can achieve meaningful results without overhauling their operations.

At the same time, organizations must ensure AI is deployed responsibly. Certification to ISO/IEC 42001 demonstrates a structured approach to managing AI risks, ethics, and performance, helping manufacturers build trust with customers, regulators, and stakeholders as AI becomes more deeply embedded in operations.

About PJR

Perry Johnson Registrars (PJR) is an accredited certification body providing management system certification services across a wide range of international standards, including quality, environmental, information security, and emerging technologies such as artificial intelligence.

PJR supports organizations seeking ISO/IEC 42001 certification, helping them demonstrate responsible AI governance, risk management, and continuous improvement as AI adoption grows.

Website: www.pjr.com
Phone: (248) 358-3388
Email: pjr@pjr.com

Every November, groups and professionals worldwide celebrate World Quality Month. This month is for recognizing the importance of quality management and continuous improvement. It also honors the people who make it all happen.

At Perry Johnson, we believe that quality excellence is more than just a goal — it’s a way of thinking. Quality is what shapes great organizations, builds trust, and ensures success that lasts. Every industry, from healthcare to technology, relies on strong quality systems. Passionate quality professionals keep these systems improving and evolving.

Why Quality Management Matters

Strong quality management gives organizations the structure and consistency they need to succeed. It helps companies meet customer expectations, improve their processes, and stay competitive in a fast-changing world.

Quality management systems (QMS) are important because they create a quality culture. In this culture, everyone, from leaders to staff, takes responsibility for excellence. When quality becomes a shared value, it transforms how people work, communicate, and solve problems.

Behind every audit, certification, and customer success story are the professionals who make it all possible. Through dedication, training, and careful quality auditing, they help organizations reach new levels of organizational excellence. Whether through ISO certification or internal improvement programs, their work builds strong, reliable systems that deliver real results.

The Power of Continuous Improvement

At the heart of every successful organization is a commitment to continuous improvement. This means never standing still — constantly reviewing processes, learning from feedback, and finding new ways to do things better.

A focus on process improvement not only enhances performance but also helps prevent issues before they arise. It keeps teams motivated, encourages innovation, and strengthens long-term success.

At Perry Johnson, we view continuous improvement as the foundation of a true quality culture. Celebrating progress, learning from challenges, and building resilience through quality-driven decisions is what it’s about.

Recognizing Quality Professionals

World Quality Month is also a chance to honor the people who make quality their mission every day. Quality professionals — including auditors, managers, engineers, and coordinators — play an essential role in helping organizations meet and exceed quality standards.

Their work often happens behind the scenes, but their impact is everywhere. They ensure quality systems function effectively, that performance improvement remains a priority, and that every process contributes to overall excellence.

By celebrating their efforts, we’re also celebrating the teamwork, expertise, and care that keep organizations running smoothly.

Building a Strong Quality Culture

Creating and maintaining a quality culture doesn’t happen overnight — it’s a continuous effort. It starts with leadership commitment, open communication, and a shared belief that quality is everyone’s responsibility.

Encouraging employees to take ownership of their roles, share ideas, and focus on improvement helps organizations grow stronger together. Whether through employee training, internal reviews, or new quality management systems, every small step adds to lasting change.

When people feel empowered to improve, quality leadership thrives — and that’s when the best results happen.

Moving Forward with Quality in Mind

As we celebrate World Quality Month, let’s take a moment to reflect. We should think about how far we’ve come. We also need to consider the opportunities that are still ahead. Every improvement, no matter how small, contributes to a bigger picture — a world built on quality, integrity, and trust.

At Perry Johnson, we’re proud to support organizations that share this vision. By improving our Quality Management System, encouraging process improvements, and valuing quality professionals, we can raise standards in every industry.

Here’s to celebrating quality — not just this month, but every day of the year!

On February 28, 2025, the International Organization for Standardization (ISO) published a revision to its Anti-Bribery Management System standard – ISO 37001.

Having completed an internal analysis of this revised standard and taking the necessary steps to implement its changes – PJR is pleased to announce we will be offering audits to ISO 37001:2025 starting on November 1, 2025.

The International Accreditation Forum (IAF) has published a binding transition timeline titled Mandatory Document (MD) 30. This document can be obtained for free on the IAF website (www.iaf.nu). IAF MD 30 has established that ISO 37001:2016 will be rendered obsolete and invalid on February 28, 2027.

In order to ensure a smooth transition for all of our current and future ISO 37001 clients we have established the following internal deadlines:

• We will cease offering ISO 37001:2016 certification audits on January 1, 2026;
• We will cease auditing to ISO 37001:2016 altogether on February 28, 2026;

Additionally, any certificate to ISO 37001:2016 that was issued on or after February 28, 2024, will be reissued showing a revised expiration date of February 28, 2027.

What Has Changed With ISO 37001?

While we recognize that this is an aggressive timeline, we are pleased to announce that the overall nature of changes to ISO 37001 are minimal. Here is a summary of the changes based on our analysis:

1. All references to “maintained documented information” and “retained documented information” have been eliminated in favor of statements that state the items “shall be available as documented information.”
2. All references to the “Anti-Bribery Compliance Function” now read as “Anti-Bribery Function.”
3. Section 3.30 – a new definition for the term “Anti-Bribery Culture.” This is part of the introduction of “culture” across the other ISO published standards.
4. Section 4 – no changes.
5. Section 5 – one new clause – 5.1.3 Anti-Bribery Culture. As written, this requirement doesn’t introduce anything truly new that wasn’t implicit in existing requirements.
6. Section 6 – one new clause – 6.3 Planning of Changes. This concept was inherent in other prior existing requirements.
7. Section 7 – multiple changes:
• Clause 7.2.2.1e – a new requirement that states personnel have to be made aware of the necessity to report potential and actual conflicts of interest.
• Clause 7.2.2.2b – a tweak to require that review of performance bonuses, performance targets, etc. be done at planned intervals (rather than “periodically” as it was before).
• Clause 7.3.1d and e – two new requirements indicating that personnel have to be made aware of anti-bribery procedures, the ABMS at large, and their duty to comply, as well as the benefits of reporting incidents.
• Clause 7.3.2 – new section header with existing content.
• Clause 7.3.3 – new section header with existing content.
• Clause 7.3.4 – a tweak to mandate that updates to training programs and refresher training both be done at planned intervals (rather than “periodically” as it was before).
8. Section 8 – two changes:
• Clause 8.1 – moves the language pertaining to externally provided processes/products/etc. from section 8.4 to section 8.1. The content is the same as it was under 8.4.
• Clause 8.4 – “mergers and acquisitions” has been added to the list of relevant activities where non-financial controls are needed.
9. Section 9 – a few changes:
• Clause 9.2.2 – this section has a new title and they’ve added “audit objectives” to the list of things that the organization has to determine.
• Clauses 9.2.3, 9.2.4, 9.3.2, 9.3.3 – each of these has a new section header with existing content.
• Clause 9.3.1 – merges the management review and governing body review sections. Clause 9.3.1 now has a second paragraph covering governing body reviews.
10. Section 10 – two changes:
• Clause 10.1 – new content pertaining to Continual Improvement intended to align to Annex SL.
• Clause 10.2 – a new section header with existing content.
11. Annex A5.2 – new guidance on “Anti-Bribery Culture”.
12. Annex A8.3.1 – new guidance on Conflicts of Interest.

As we hope you can see – the nature of what has changed is extremely minimal. When it becomes time for you to schedule your first ISO 37001:2025 audit PJR will send you a special document that you will need to complete ascertaining to your preparedness for the transition audit. We are pleased to announce that in most cases it will be possible for a client to complete their transition audit with no special additional audit time.

Most clients will find it optimal to complete their transition as part of their next regularly scheduled audit. However, we also recognize that some of our clients may wish to complete a special standalone transitional audit. If you choose to pursue this option, please bear in mind it will result in additional overall audit cost to your company.

PJR has been offering ISO 37001 audits for over 5 years, and we remain the only North American headquartered certification body with ANAB accreditation for this most unique certification program.

If you have any questions on ISO 37001, we invite you to contact us.

pjr@pjr.com
1-800-800-7910

At Perry Johnson Registrars, Inc. (PJR), our core mission is to help organizations achieve and maintain quality in manufacturing, supply-chains, systems and beyond. But quality is not just for factories; it applies to everyday experiences too, like Halloween! Here’s how to bring a quality mindset to your Halloween plans for 2025 so every trick-or-treat moment is meaningful, fun, and safe.

What does “quality” mean for Halloween?

Quality isn’t just about meeting standards, it’s about delivering consistent, inclusive, and well-designed experiences. For Halloween, that means thoughtful planning, inclusive treats, safe execution, and reviewing what worked (and what didn’t) for next time.

1. Define your purpose and standards for the night

Start by asking: What do we want from this Halloween? Maybe: “Every child has fun,” “All children feel included,” or “No one is exposed to unsafe treats.” With the purpose clear, set simple standards: e.g., “All treats will be verified safe or non-food,” “We’ll host at least one non-food treat bowl,” “We’ll enforce no eating until home.”

2. Map the process (just like you would in a quality system)

• Pre-event: Stock safe treats and non-food items; create a “goodie bag swap” plan; print signage or use the Teal Pumpkin indicator.
• During event: Monitor when candy is handed out and collected; supervise children as they trick-or-treat; pause before eating.
• Post-event: Sort the loot with your child; swap out unsafe items; reflect: what went well, what we’ll change next year?

3. Apply verification and monitoring

In a manufacturing sense, you’d verify ingredient sourcing and audit processes. On Halloween: verify labels on candy – monitor that mini-sized treats may vary in formulation (a growing risk in 2025). https://www.whsv.com Also monitor if non‐food treats are accepted and enjoyed.

4. Promote inclusivity as part of quality

Quality isn’t just about safe items, it is also about people feeling welcomed and part of the group. By using non-food treats and participating in the Teal Pumpkin Project, your household signals that every child is valued. FoodAllergy.org

5. Continuous improvement

After Halloween: hold a “debrief” what went well, what could be better? Maybe you will find you need more non-food items. These learnings feed into next year’s plan.

6. Share the quality mindset with your community

Just as organizations certify to quality standards and then spread those best practices, you can spread best practices in your neighborhood! Tell friends about your inclusive treat bowl and your process of swapping out unsafe items. Be a Halloween “quality champion.”

At PJR, we believe good quality is more than a label. It touches real life and real experiences. This Halloween, bring quality to your front porch, treat-bowl, and family plan. When you treat safety, inclusivity, and fun as essential components of “doing it right,” everyone wins. Wishing you a high-quality Halloween 2025!

Understanding and using Cost of Quality (CoQ) is not just about tracking numbers. Creating real business value is the focus. This comes from making better decisions, reducing waste, and making smarter investments. For ISO 9001 certification, managing a quality management system, or improving customer satisfaction, CoQ can help you.

1. What Is the Cost of Quality?

Cost of Quality is a framework that categorizes all quality-related costs into four areas:

• Prevention Costs – training, process improvement, and quality planning.
• Appraisal Costs – inspections, audits, and testing.
• Internal Failure Costs – scrap, rework, downtime because of defects.
• External Failure Costs – warranty claims, customer complaints, product recalls.

Understanding these quality cost categories helps organizations reduce the cost of poor quality and shift focus on proactive improvement.

2. Implementing Cost of Quality: A Practical Approach

Many organizations struggle with implementing Cost of Quality because they overcomplicate it. Instead, begin with a simple, structured method:

Start with What You Know

Use unit-cost estimates for common failure events (e.g., cost per returned item or rework hour). Then apply those estimates across your current volume to quickly assess your total cost of quality.

Focus on Key Drivers

Identify the top 3–5 failure points that drive the most cost or risk. This aligns with lean quality improvement principles, ensuring you spend time solving what matters most—without drowning in data.

Apply Digital Quality Management Tools

Modern digital quality management systems (eQMS) help you gather real-time data. They let you track failure trends and create quality dashboards. This supports continuous improvement while reducing manual reporting.

3. ROI-Driven Quality Management

A key to success is linking CoQ initiatives with measurable outcomes.
– When you consider a quality improvement strategy, think about employee training or redesigning processes.
– Make sure to link it to a return on investment (ROI).

Investing in prevention and appraisal costs can greatly lower external failure costs. This includes costs like recalls and lost customers. That’s where quality management ROI becomes clear: spending smart in the right areas pays off.

4. Align with ISO and Strategic Business Goals

Whether you manage a standalone ISO 9001 system or an integrated management system, CoQ should help your strategic goals. That includes:

• Improving customer satisfaction
• Reducing rework and scrap
• Meeting regulatory compliance
• Enhancing overall efficiency

Perry Johnson Registrars offers expert help to organizations. They assist in aligning Cost of Quality tracking with ISO standards, audits, and certifications.

5. Use CoQ as a Continuous Improvement Tool

Remember: CoQ is not a one-time report. A quality improvement tool that should evolve with your processes. Keep an eye on trends, change your metrics, and try to find your quality sweet spot. This is where you can lower the total cost of quality and boost performance.

How Perry Johnson Registrars Can Help

At Perry Johnson Registrars (PJR), we help organizations unlock the full value of CoQ by:

• Supporting ISO certification and compliance through tailored audits
• Advising on quality cost tracking systems
• Assisting in the implementation of lean and digital quality management tools
• Aligning your quality management strategies with business goals

If you are new to Cost of Quality, we can help. Our team provides useful advice tailored to your industry. To improve your program, reach out to us.

Key Takeaways

1. Categorize your quality costs into three types: prevention, appraisal, and failure.
2. Use unit cost estimates to find the total cost of quality (CoQ).
3. Identify the top cost drivers with lean quality improvement methods.
4. Use digital quality management tools to help your efforts.
5. Present CoQ projects with a return on investment (ROI) to get support from leaders.
6. Align CoQ efforts with ISO systems and your business strategy.
7. Treat CoQ as a journey of continuous improvement.

Using Cost of Quality correctly does more than cut waste. It also improves product and service quality. This leads to happier customers and helps the business grow sustainably.

Ready to take the next step? Contact Perry Johnson Registrars today and let us help you turn quality cost tracking into a strategic advantage.

Contact Us:
Phone: (248) 358-3388 or 1-800-800-7910
Email: pjr@pjr.com