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Qualilty Assurance and auto industry

What Deming sought was a mathematical means of controlling the level of quality by seeking "ever finer manufacturing tolerances" (Halberstam, 1986, p. 312). While this system of quality control demanded a commitment from the highest management levels, it depended upon the participation of personnel from all levels of the organization involved in the production process.

Participation meant more than input from production workers. It also meant that managers must be a part of the production process. In American industry in the 1950s and 1960s, however, the concept of the professional manager developed though an MBA education and a fasttrack management development program meant that managers would have little or no contact with the actual production process (Halberstam, 1986, p. 313). Shortterm financial goals took precedence over all else  particularly quality control.

Thus, the American automobile manufacturing industry in the 1960s demanded an increasing accommodation by the production function for the norms established by the organizational finance function (Halberstam, 1986, p. 461). Lee Iacocca, who, at that time, headed Ford, established the Profit Improvement Program (PIP), the purpose of which was to reduce costs by taking them out of an existing budget (p. 461). Thi


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