Abstract

Cost effectiveness reflects the cost of an intervention in relation to outcome. The present study has measured and evaluated the quality programmes/projects with reference to their effectiveness in terms of cost and quality in exploration & production companies (petroleum sector) of Pakistan. The population of study consists of professionals working in the selected exploration & production companies by distributing 250 questionnaires, out of which 183 valid responses were included for further processing and analysis of the study. Multiple regression technique was used to test the hypotheses. The results of study reflect that all chosen characteristics significantly contribute toward achievement of organizational cost-effectiveness. Those companies who applied quality programmes in their processes have the periphery of minimum cost and maximum outcome of their products and are more cost effective organizations. The study also signifies the impact of quality programmes/projects having support of strategic/operational level for the achievement of dependent variable (cost-effectiveness) and requires the attention of executives to adapt and implement the latest technologies by providing the training opportunities to all professionals from time to time. The study also strengthens the concept of Cost Effectiveness Analysis in the E&P projects where the managers can improve their processes to minimize the cost and save the time.