Quality Management Through ISO Certification And Quality Costs Reporting: A Study Of Bahraini Companies

Abstract

This study investigates quality management by Bahraini companies through qualifying for ISO certification and measurement and reporting of cost of quality.  Its main purpose is to examine the motivation behind quality certification and the extent to which Bahraini firms measure and report quality costs.  A sample of 100 companies was selected at random from the Ministry of Commerce Directory.  A mail questionnaire was developed and distributed to the entire sample.  Eighty one companies responded to the questionnaire; a response rate of (81%) which is considered appropriate for this type of study.  Of the (81) firms, (47) are ISO certified and the dominant reasons for quality certification are:  to improve the firm’s competitive advantage; to respond to customer demands; and to reduce costs.   Cost of quality reporting is adopted by (40) firms (49.4%) of the respondents to the question; (22) companies indicated that they plan to implement cost of quality reporting; and the remaining (14) companies have no plans to implement it.  The most important uses of a quality cost report are: product cost information; quality cost planning; and targeting areas for process and product improvement.  The main reason for not measuring quality costs are: “the extensive use of non-financial measures” and “quality is part of the firm’s culture”.