The Cost of Quality and its effects on operational performance: A case study of Medical Laboratories in the West Bank رسالة ماجستير

Abstract

Many firms place a high value on quality as a marketing component to remain competitive; consequently, companies invest substantially in quality and continuous improvement projects to stay competitive. Organizations use management systems to ensure that their products and services meet their consumers' expectations, leading to various quality costs. Medical laboratories must find a way to strike a balance between price and quality without sacrificing the quality of their services. This research investigates the COQ practices and their effect on operational performance in Palestinian Medical Laboratories. A descriptive-analytical research design approach was used to investigate the COQ at 235 medical laboratories in the West Bank and Jerusalem. A validated questionnaire was used to collect data from labs licensed in the West Bank, and the data were analyzed using SPSS software to determine the COQ. Data analysis techniques such as exploratory and confirmatory factor analysis, descriptive statistics, correlation analysis, and multiple regression are used to analyze and organize the data. According to the study's findings, the level of implementation of quality cost systems in Palestinian medical labs was 52.8 percent on average for all four dimensions of quality costs, while the level of performance of medical laboratories was 60.2 percent (moderate level). The results show a strong positive relationship between COQ v practices and laboratory operation performance. Also, laboratories do not measure all costs of the quality items and use a model to calculate them. The lack of experience in calculating COQ is the first and most significant cause for laboratories not measuring COQ. Following that, there is a lack of knowledge in calculating it. This study is considered one of the first studies to analyze the impact of COQ practices on the operational performance of Palestinian medical laboratories. It will thus assist in enhancing the awareness of medical laboratory departments regarding the relevance of assessing quality costs. The level of awareness can be improved by developing training courses that will enhance the ability to calculate the dimensions of quality costs. The findings of this study assist decision-makers and managers in understanding the level of application of the COQ in laboratories and hence in developing quality-related plans and strategies