1. Quality and Operations Management
“Texas Instruments - Cost of Quality

2. Cost of Quality Control Costs Failure Costs prevention appraisal
internal
external
“The COQ includes those costs associated with the
definition, creation, and control of quality as well as
the evaluation and feedback of conformance with
quality, reliability and safety requirements, and those
costs associated with the consequences of failure to
meet the requirements both within the factory and in
the hands of the customer.”

3. Cost of Quality Prevention Appraisal quality planning process control
data acquisition and analysis
training and personnel development
design verification
quality system development and management
quality reporting
improvement projects
Appraisal
test and inspection of incoming material
lab-based acceptance sampling
in-line inspection and testing
setup for test and inspection
test/inspection equipment and supplies
quality audits
quality endorsements (ISO, MBNQA)
field testing
test/inspection equipment maintenance

4. Cost of Quality Internal External scrap rework retest downtown
yield losses
disposition
engineering analysis
tracking and reporting
expediting
External
customer complaints
warranty costs
service and repair expense
product liability
recall expense and management
returned material processing
credit allowance
loss of goodwill

5. Setting The Stage

6. Why Implement COQ?
Pros
Cons

7. COQ categories -- useful or not?

8. COQ versus DMOQ

9. Was T.I. Successful? (and will this work anywhere?)

10. Next Steps for T.I.