Standards in business are not only regulations and norms. It is a universal language for collaboration, a way to ensure quality and trust that goes beyond the boundaries of a single enterprise. In this material, we will look at the history of standardization and analyze why standards have become an integral part of modern business.
History of standards: from the cubit to the metric system.
Imagine a world without standards. Not without state requirements for fuel quality, but without standards at all. An arshin, a pood, a fathom and a pound, a step, a cubit – these are the measures that were used by mankind at the end of the 19th century. And different countries had their own measures. A small error was not counted. To measure the volume, we used: a barrel, a bucket. For drinks: a mug and a scale. Perhaps the first car manufacturers indicated the volume of the car engine in circles? Although, still, crude oil is measured in barrels.
At the beginning of the twentieth century, humanity switched to a standardized system of weights and measures. All of Europe gradually switched to the metric system, and the British Empire and America continue to measure size in inches, from the Dutch “finger” and in feet.
Oil and fuel standards: first steps.
And what happened to the standards for oil and fuel? At livestock enterprises, crude oil was distilled in ordinary stills and a light oil product was obtained. What quality it was – it was difficult to say, because such a term and indicator “octane number” had not yet been invented, and sulfur content was not considered a key indicator. And the oil had different density and quality. Accordingly, the fuel was of different quality, from different manufacturers. It may be a coincidence, but the name of the Rockefeller oil company had the word “standard” (Standard Oil). That is, business was interested in implementing the standard. I wonder why that is? Maybe because Rockefeller wanted to convey a message to consumers: if you buy from us, you buy proven quality, that is, standard, identical, constant, stable. Gasoline is still called stable, which breaks down into fractions under the influence of temperature changes and shocks.
Impact of standards on the consumer.
Hence the standard for any color Ford, model “T”, if it is black. This is a message to consumers: “If you want an exclusive car – buy a colored, expensive car, and if you want a reliable standard, inexpensive car – buy a black “T”. Hence the standard Big Mac. It is the same anywhere in the world. Not the best, but understandable. familiar. The standard is simple, reliable, easy to control and check. The standard separates “black” – illegal, contractual, from white – legal.
Standards in business: Ukrainian experience.
Many people remember how at the beginning of the 21st century, a large company entered the market with a development model based on the principle of franchising. At that time, there were many different formats and colors of gas stations in Ukraine, different owners in different regions had different visions of their business and sense of color.
There were still relatively few stations, the car fleet was growing rapidly, and the issue of fuel quality was very urgent. But a large company offered its brand – blue, to various owners. Thus, to become one big company in the mind of the client. And soon the brand with advertising support on TV was a well-known, understandable standard – that is, popular. The ad said that the quality of gasoline meets the norm of the quality standard. By the way, the A&N company brand, as a former part of a large franchise, still has a blue color.
Franchising and standards.
What tools did that big firm use?
The franchise holder usually implements and monitors the standards.
1. Fuel standard, 2. Service standard, 3. Gas station management standard. And customers have a hotline – a way to instantly complain to the franchise holder about non-compliance with the standard of the “jobber” – which works under the brand. Here are the franchising tools. A mobile fuel quality laboratory was implemented to monitor compliance with standards.
Why is the indicator of the development and size of the company a confirmation of audits by a large auditing company? Why are manufacturers and market operators proud of their compliance with ISO standards? Answer: standards. If the processes in production and in the office meet the standard, this business is easy to evaluate, sell, and get a loan for it. There are so-called “best practices” – standards by which processes are carried out in the warehouse, accounting, procurement and production.
Standards for society and the state.
What is the benefit to society from state standards and metrology bodies? Remember, fifteen years ago, the word “spread” did not exist, and manufacturers wrote: “butter” on a packet of vegetable margarine. Now the same is happening with wine. According to the latest laws, it is no longer possible to write the word “wine” on the label of a cocktail made of grape juice and alcohol.
Let’s return to fuel standards. Ukraine focuses on European standards, which are becoming stricter every year. What is the reason for this? Europe, which makes good money from tourism, does not want to destroy the roofs of cathedrals and marble statues with sulfuric acid, which is formed from car exhausts. Therefore, the Euro 6 standard regulates an even lower sulfur content than Euro 5, perhaps we will live to the Euro 26 standard one day. But American standards do not have such requirements for sulfur content. African standards are also not too high, Indian, Chinese – it would be interesting to know what requirements the government of these countries has for the content of aromatics or benzene. By the way, in Thailand they still sell fuel in canisters and plastic bottles at small gas stations. I think that the law allows it.
A look into the future.
Over the past hundred years, humanity has come a long way in forming a standardized approach to world perception. Starting from weights and measures to product quality and features of production and quality management. And what about creativity? How about an individual approach to the client? How does the client perceive the standard approach? About this in the next article.
Andriy Kopylov
Head of the APEB standards committee