• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Review and solve the Texas Instruments: Cost of Quality Case

Extracts from this document...


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. ...read more.


Besides, the cost manager who recorded down the quality cost did not believe that the quality of the processes or products would be improved by noting down and calculating the numbers alone. Rather, they were defensive about their processes and confronted for the quality cost they noted down. ISD could not drop cost of quality (COQ) system totally because it is a useful measure. Cost of Quality can be used to determine the global optimum for a process, and control that process' progress towards its global optimum. (http://www.pqa.net). That is also the reason why ISD's impulse to implement COQ system to competitive with many foreign companies. According to Don Schenck, the division Quality & Reliability manager, COQ does inform "where our most significant operation lies", and assists them "identify areas for improvement" (Ittner & Kaplan, 1990, p. ...read more.


The bodywork of a car does not need to be hard. Therefore, price of car is low and Vietnamese consumers can buy it. In contrast, Toyota Motor Corp designed car with high capacity suitable for roads in The U.S., it can run with high speed so bodywork of car must be harder and heavier. American consumer accepts the price that meets their requirements. ISD can adjust cost of quality variables such as turnover costs, project costs, RMR, product inspection, production planning, production rework, reliability, burn-in, and test. To get quality products with suitable price in every country is a hard task. ISD need to research manners and customs of consumers and especially the income of consumers in that country to get success in business. Summary By reviewing the Texas Instruments case, we understand the difference between prevention, appraisal cost, internal, and external failure. Besides, we also know definitions of cost of quality variables, understand how to choose an appropriate quality tools under different manufacturing operations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Information system used in Toyota Motors

    A DSS is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions ICT (Information & Communication Technology) Infrastructure Toyota Motor Europe (TME)

  2. Strategic Management - CARREFOUR CASE ANALYSIS

    o NEEDS THAT PRODUCT SATISFIES * Allows busy professionals to order goods remotely so that they can focus more on work. Also, allows handicapped and elderly people access to a wide variety of products that may not be available in their area of mobility.

  1. Zara Case Analysis

    Zara's strategy would work for industries where the product life cycle is very short. However, the fashion industry is generally focused on longer life cycles where products are designed well in advance and are marketed for an entire season. Zara reacts to the current market trends and uses a quick response system to produce new styles within three weeks.

  2. Leadership Theories - this review seeks to determine which theoretical perspectives, theories and schools ...

    Leadership development, on contrast, would entail a focus on the social system in order to build interpersonal competences, such as social awareness, team orientation, commitment, cooperation, respect, and network bonds among members of the organization. Since Day's (2001) leadership development description does not include strategic concerns, this category was not

  1. Innovation For Business Success. It is possible to be innovative in both large ...

    On more than one occasion Chris and GPC have suggested a different way of operating to the customer, received a response of "no it can't be done or improved like that, and if you can prove it we'll buy from you".

  2. Leadership - literature review, theories and the case of the entrepeneur Michael Dell.

    This questionnaire separated the leader?s behavior in to two dimensions which are Initiating structure and Showing Consideration. The former means the leader mostly will consider the relationship between themselves and their staff. The later means the leader would like to develop trust, respect, support, and friendship with subordinates.

  1. SWOT Analysis of Toyota

    For the first half of 2011, Toyota had fallen to third place, with GM first and Volkswagen second. Toyota's financial unit has asked for an emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at more than US$3 billion.

  2. Enterprise rent-a-car total quality management

    Secondary data was gathered through two mediums. Firstly, the internet, which was used by researching the Enterprise Rent-a-Car?s own and its parent company?s website and reports. Other websites were further used to obtain financial information and articles regarding the external perception of the firm.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work