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EM12C4 – Operations Management


Deliberate Defectives


A story which illustrates the difference in attitude between TQM and a non-TQM company has become almost a legend among TQM proponents. It concerns a plant in Ontario, Canada, of IBM, the computer company. It ordered a batch of components from a Japanese manufacturer and specified that the batch should have an acceptable quality level (AQL) of three defective parts per thousand. When the parts arrived in Ontario they were accompanied by a letter which expressed the supplier’s bewilderment at being asked to supply defective parts as well as good ones. The letter explained that they had found it difficult to make parts which were defective, but had indeed managed it. These three defective parts per thousand had been included and were wrapped separately for the convenience of the customer.




  1. How does this short story illustrate the essence of TQM?




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