Review and solve the Texas Instruments: Cost of Quality Case

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Review and solve the Texas Instruments: Cost of Quality Case.

Introduction

Ittner and Kaplan (1990) introduced the case of Texas Instruments describing the company's main business was to produce programmable controllers for the industrial automation and factory control fields. Besides, Texas Instrument's Industrial Systems Division (ISD) processed a state-of-the-art facility for assembling pin-in-hole and surface mount circuit boards. ISD was established in 1973 and developed bigger over time through overseas offices in over the world. To competitive with foreign companies, ISD was implemented the cost of quality system in 1983.

Analysis

As Ittner and Kaplan (1990) elaborated the ISD case, the management of ISD considered that implement the quality control system changed its nature as a quality culture is institutionalized. They wondered whether to retain the system, modify it, or drop it completely though ISD had achieved great success in institutionalizing a "quality culture" in several years. They did not counted cost of quality numbers eight months ago and they concentrated on other measures of quality.

ISD's business was operated a large segment through overseas offices. The cost of quality system for ISD was designed for all offices in over the world.