Internal Standards
Wednesday, April 4th, 2007I wrote a few days ago about the various uses of the word “standard” and provided a few examples. While some uses of the word may be more applicable to our interests than others, even within that usage there are some distinctions.
Generally when we think of standards we mean a technical specification developed by multiple interested parties (manufacturers, implementers, users, etc.) in some sort of open consensus process that forms an agreement on how something should be done. But another form of standards are those specifications developed by a single party for use strictly within that organization for its own benefit.
Such standards could include manufacturing or administrative processes, purchasing requirements, facilities policies, or employee codes of conduct. Rather than being developed jointly by all interested parties under a consensus process, these internal standards are usually developed by a small group or perhaps even a single individual within the organization, then approved by management.
For example, a fast food franchise such as McDonald’s or Burger King will have standards for the operation of franchise stores, including store layout, employee uniforms, composition of and preparation instructions for menu items, and purchasing of the ingredients used to make items on the menu. The goal of these standards is product consistency between franchises (a customer knows what they are going to get, for better or for worse, in any store in the country), and cost containment (quantity discounts from e.g. a single vendor of meat patties that can supply stores across several states). The company will require some level of compliance with these standards from store owners as a condition of their holding the franchise.
The big difference from external standards, those developed to be used by multiple companies across an industry, is that there is no benefit from interoperability or interchange. A single customer, for example, will not be buying a bun from McDonald’s and the meat patties from Burger King. (Though french fries, a complimentary item, could be purchased across the street if you like those better.)
Manufacturers and other large organizations previously used such internal standards but have largely moved to external industry-wide standards for purchasing. The U.S. Department of Defense used to create huge numbers of their own standards (Milspec), as did other government agencies, but the federal government has been encouraging agencies to use public standards (and participate in their development) as a means of cost savings. Rather than having to create a government-specific version of a product, vendors can supply the products they already manufacture. Manufacturers moved to industry standards for such mundane items as nuts and bolts a long time ago. Use of these industry-wide standards saves money for the manufacturers, which is passed on to the consumer. The consumer will further benefit when it comes time to buy replacement parts.