Quality cost management in Moroccan industrial companies: Empirical study

Journal of Industrial Engineering and Management, Feb 2019

Purpose: The purpose of this study is to give an insight into the practices of Moroccan industrial companies in the area of managing quality costs. Furthermore, it analyses how the quality costing system (QCS) implementation and sophistication differentiate according to a number of variables (size, business market orientation, QMS Maturity...).Design/methodology/approach: In order to achieve this objective, a questionnaire survey has been conducted among a heterogeneous sample of 1000 industrial companies that are operating in the national territory yielding a response rate of 23.4%. This study uses exploratory and chi-square test in the process of answering the above-mentioned questions.Findings: The survey highlighted the limited use of quality costing practices among Moroccan industrial companies. Results indicated that 42.6% of surveyed companies are engaged in QCS while 63.4% of them do not. The primary barrier is the complexity of QCS implementation. Besides, findings pointed out that origin, business activity, business market orientation and QMS maturity level are prominent to QCS implementation (p<0.05).Originality/value: This is one of the first studies to provide an insight into practices of Moroccan industrial companies in the area of managing quality costs. Indeed, several studies were led in different countries but no empirical study has been conducted in Morocco. This will give a clear picture of the situation at the national level.Research limitations/implications: The major limitation of the study is the limited number of respondents. Future researches should be conducted to cover a bigger sample size from manufacturing and services sector as well.Practical implications: The findings provide an insight into the barriers to QCS implementation which can be used as basis to identify ways to overcome these difficulties, to develop guideline and reveal best practices in the implementation of COQ reporting system.

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Quality cost management in Moroccan industrial companies: Empirical study

Journal of Industrial Engineering and Management JIEM 2013-0953 Quality Cost Management in Moroccan Industrial Companies: Empirical Study Lamiaa Ayach 0 Abdellah Anouar 0 Miloud Bouzziri 0 0 Faculty of Sciences and Techniques , University Hassan 1 , Morocco Purpose: The purpose of this study is to give an insight into the practices of Moroccan industrial companies in the area of managing quality costs. Furthermore, it analyses how the quality costing system (QCS) implementation and sophistication differentiate according to a number of variables (size, business market orientation, QMS Maturity...). Design/methodology/approach: In order to achieve this objective, a questionnaire survey has been conducted among a heterogeneous sample of 1000 industrial companies that are operating in the national territory yielding a response rate of 23.4%. This study uses exploratory and chi-square test in the process of answering the above-mentioned questions. Findings: The survey highlighted the limited use of quality costing practices among Moroccan industrial companies. Results indicated that 42.6% of surveyed companies are engaged in QCS while 63.4% of them do not. The primary barrier is the complexity of QCS implementation. Besides, findings pointed out that origin, business activity, business market orientation and QMS maturity level are prominent to QCS implementation (p < 0.05). Originality/value: This is one of the first studies to provide an insight into practices of Moroccan industrial companies in the area of managing quality costs. Indeed, several studies were led in different countries but no empirical study has been conducted in Morocco. This will give a clear picture of the situation at the national level. Research limitations/implications: The major limitation of the study is the limited number of respondents. Future researches should be conducted to cover a bigger sample size from manufacturing and services sector as well. Practical implications: The findings provide an insight into the barriers to QCS implementation which can be used as basis to identify ways to overcome these difficulties, to develop guideline and reveal best practices in the implementation of COQ reporting system. quality cost; quality costing system; QMS maturity level; sales revenue 1. Introduction In a highly competitive environment, the biggest challenge for enterprises is to offer higher quality products at the lowest prices. In order to ensure this, it is required for companies to analyse and rationalise all components of their business cost. Since Cost of Quality (CoQ) constitutes a significant portion of the business cost and a considerable part of the sales revenue. It becomes an imperative for firms to manage and monitor quality-related costs (QRC). Indeed, many authors (Superville & Gupta, 2001; Uyar, 2008; Tye, Halim & Ramayah, 2011) state that CoQ can reach up to percentages that are higher than 10% of sales revenue. However, most of companies are unaware of the quantum of their quality cost and therefore underestimate it. Quality managers use indicators for monitoring process performance and production quality, but they usually do not develop a separate framework for measuring and evaluating quality costs (Satanova, Zavadsky, Sedliacikova, Potkany, Zavadska & Holikova, 2014). The authors of quality cost surveys conducted worldwide reported disappointment at the small number of companies with formal system of identification, measurement and management of quality cost. They stated that only some firms implement a COQ measurement system but do not report these costs systematically, nor do they use reports properly as an opportunity for improvement (Glogovac & Filipovic, 2017). Thus, it can be concluded that despite the recognised importance of the implementation of a quality costing system (QCS), the concept is not widely applied. While it is unknown whether Moroccan industrial companies are engaged or not in the management of quality-related costs, it was required to perform an empirical study which highlights and presents an analysis of the situation at the national level. In this sense, the present work aims to bring out an insight into the Moroccan industrial companies practices in the area of CoQ management and specifically to investigate the following points: ? ? ? Identifying the level of applicability of quality cost control in Moroccan industrial companies; Analysing the practices of Moroccan industries in the area of managing their quality costs. Otherwise, understanding the barriers to the implementation of a QCS; Analysing the correlation between the characteristics of an organisation and the implementation/sophistication of a QCS; As a research objective, industrial companies were the target. There are approximately 65505 industrial enterprises in Morocco (http://www.baromettre.directinfo.ma/) that contribute to the gross domestic product (GDP) with an average of 29.1% and offer about 21% of work places (...truncated)


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Lamiaa Ayach, Abdellah Anouar, Miloud Bouzziri. Quality cost management in Moroccan industrial companies: Empirical study, Journal of Industrial Engineering and Management, 2019, pp. 97-114, Volume 12, Issue 1, DOI: 10.3926/jiem.2749