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defects. Around 1970, it is said, a group of investment analysts visited a world-
famous UK engineering company. They asked the questions of their trade: about
profit margins, stock control and balance sheets. The company's executives
seemed honestly puzzled. They did not see the point of all this, they said. Their
products were the finest in the world. Why all these detailed questions about
numbers?
Rolls Royce, the company in question, duly went bust in 1973. The
trouble with old-style quality, it seemed, was that it encouraged supply - driven
management. The engineers would make the product to the highest possible
standard and price it as a result. If the public was so uncultured that they turned
it down, so much the worse for the public. And so old-style quality got a bad
name in business circles. It was all very well for artists to produce masterpieces.
The job of companies was to please the market.
Additional damage to old-style quality was done by the rise of Japan.
When Japanese cars, toys and television sets first reached the market in the US
and UK, local manufacturers considered them cheap trash. In the beginning,
they were. But under the teaching of Edward Deming, the Japanese were
learning about the second definition of quality. Western customers then began to
realise that while Japanese cars might be tin cans, they did not keep breaking
down, as did British and American cars.
In time of course, Japanese cars stopped being tin cans, and became
stylish and comfortable vehicles instead. That is, they achieved old-style quality
as well. As western manufacturers discovered to their cost that was in some
respects the easy bit. New-style quality was harder.
Quality has a third meaning: that of value for money. To qualify for that
meaning, a product must be of certain standard; and it should express a sense,
not of outright cheapness, but of being sold at a fair price.
The US fast foods group McDonald's, for example, talks of its “high
quality food”. But at 99c or 99p, its hamburgers are as close to absolute
cheapness as any person in the developed world could wish. They are also
highly reliable. Eat a McDonald's anywhere around the world and the results
will be approximately similar. But as 100 anyone who has eaten a really good
American hamburger knows, a McDonald's is also a long way from quality in its
original sense.
3. Discuss these questions.
1. Why were the Rolls Royce executives “puzzled” when the analysts
asked their questions?
2. According to the writer, what mistake caused Rolls Royce to go
bankrupt?
3. What advantage did Japanese cars have compared with British and
American cars?
4. Complete the definition below.
Nowadays, high quality products have three essential features:
PDF created with FinePrint pdfFactory Pro trial version www.pdffactory.com
defects. Around 1970, it is said, a group of investment analysts visited a world- famous UK engineering company. They asked the questions of their trade: about profit margins, stock control and balance sheets. The company's executives seemed honestly puzzled. They did not see the point of all this, they said. Their products were the finest in the world. Why all these detailed questions about numbers? Rolls Royce, the company in question, duly went bust in 1973. The trouble with old-style quality, it seemed, was that it encouraged supply - driven management. The engineers would make the product to the highest possible standard and price it as a result. If the public was so uncultured that they turned it down, so much the worse for the public. And so old-style quality got a bad name in business circles. It was all very well for artists to produce masterpieces. The job of companies was to please the market. Additional damage to old-style quality was done by the rise of Japan. When Japanese cars, toys and television sets first reached the market in the US and UK, local manufacturers considered them cheap trash. In the beginning, they were. But under the teaching of Edward Deming, the Japanese were learning about the second definition of quality. Western customers then began to realise that while Japanese cars might be tin cans, they did not keep breaking down, as did British and American cars. In time of course, Japanese cars stopped being tin cans, and became stylish and comfortable vehicles instead. That is, they achieved old-style quality as well. As western manufacturers discovered to their cost that was in some respects the easy bit. New-style quality was harder. Quality has a third meaning: that of value for money. To qualify for that meaning, a product must be of certain standard; and it should express a sense, not of outright cheapness, but of being sold at a fair price. The US fast foods group McDonald's, for example, talks of its “high quality food”. But at 99c or 99p, its hamburgers are as close to absolute cheapness as any person in the developed world could wish. They are also highly reliable. Eat a McDonald's anywhere around the world and the results will be approximately similar. But as 100 anyone who has eaten a really good American hamburger knows, a McDonald's is also a long way from quality in its original sense. 3. Discuss these questions. 1. Why were the Rolls Royce executives “puzzled” when the analysts asked their questions? 2. According to the writer, what mistake caused Rolls Royce to go bankrupt? 3. What advantage did Japanese cars have compared with British and American cars? 4. Complete the definition below. Nowadays, high quality products have three essential features: 96 PDF created with FinePrint pdfFactory Pro trial version www.pdffactory.com
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