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As electronic components become smaller, quality and cost control problems within a manufacturing operation become correspondingly larger. This happens because there is a direct relationship between shrinking component size and shrinking yields. As yields become lower, they also become more erratic, which phenomena, in turn, makes it very difficult to control production costs and provide pricing guidance to Marketing. Achievement of high yields and low production cost are almost an impossibility in a thin-film hybrid microcircuit operation without the combination of a strong quality assurance program and an accurate cost accounting system. This paper will outline the process problems encountered as component size gets smaller making it increasingly difficult to maintain circuit integrity and resolution. The necessity of maintaining process controls with well executed quality and cost programs will be reviewed.