 This is George Mason. Hello George. George is an average American government contractor. His plant isn't the largest in the country but it isn't the smallest either. Up until now, George has had things pretty well licked. In doing business with the government he's been able to rely on a government inspector for his quality control. George, this figure represents that inspector who's been around to see to it that all of your products have met government specifications. Of course, once in a while George has muttered about that inspector's constant harping on better plant inspection. But at the same time he's been able to rely on him. Until now. For undercurrent policy the role played by that inspector is going to be greatly changed and George is going to have to do his own inspection. Advertisements for government contracts and the invitations for bid now require that contractors will perform or have performed all necessary tests and examinations according to precise specifications. This includes George's component parts, his end item and his packaging, packing and marking materials. And he must certify the results and furnish reports to the government as required by his contracting officer. The provisions are very specific. George is going to have to plan his inspection system to include all examinations and tests required by the invitation for bid, both on components and end items. As a result, George will have to apply a great deal of care, thought and planning throughout his production. Of course the government will help him work out his new system. That's right George, you're going to have to plan for a complete inspection system before production. During it and afterwards. Naturally when you prepare your bid you've got to include the quality control system and take into consideration the extra work, the extra expense of the inspection requirements. But it is expected that the cost of your new system will be reflected in your bid. For while it is necessary that you do your own inspection it is not expected that you as the contractor should have to absorb its cost. When George has finished a detailed outline of his plans it will help him figure his bid more accurately. Therefore the thoroughness with which he has worked out his system will have a great deal to do with his chances of being awarded the government contract. Of course companies with established quality control systems have a decided advantage in estimating bids. If George has fulfilled all the requirements and his bid is the lowest from a responsible bidder he'll get that contract he's been hoping for. Ah there it is George. Oh you're a pretty happy fellow. You're already counting your profits. But what about that due date? You've still got some work ahead you know. Take a look at that chart on the wall. There's your first step to perform the required inspection on all raw materials and or component parts that come into your plan. You may do this in a variety of ways. You may require that your supplier provide you with the certificate guaranteeing that raw materials or components meet government standards. Or you may perform inspection in your own plant. Or you may send samples to a laboratory for testing. The important thing is that you are assured that all of the incoming materials you receive comply with specification requirements. Another thing George. Once you've established quality control covering pre-production phases of your operation the specifications may require you to set up control checkpoints at certain critical steps in your production. These inspection stations may involve examination or testing or both. George you need to know the exact condition of your product through every step in its development. If there's a faulty operation anywhere along the line you'll be able to pinpoint it at once. Now the final phase of the required inspection system George is to set up controls to cover your end item and its packing. According to a list of the allowable number of major or minor defects you will determine for yourself if your product meets government standards exactly as that government inspector used to do and you'll keep complete records as he did. Whether your inspection will be by random sampling or on a one hundred percent basis will be spelled out in your contract. That's it George. When your end item inspection station has found your product acceptable you can ship with assurance. Thanks to your own inspection system you know you're turning out a quality product. All that government inspector will still drop around once in a while particularly in the beginning when you're getting your new system started. It's his job to conduct a verification inspection to see that you're fulfilling all the requirements of your contract. That verification inspection consists of reviewing the records you've been keeping records covering raw materials in process control points and end item inspection. That government inspector will also look over your quality control stations. He will perform examinations and arrange testing to verify the accuracy of both the supplier certificates and your own procedures. Recognize that all important paper? Here comes the payoff George. Here comes that government stamp of approval. Basically you're on your own now. You are responsible only to yourself and your own inspection program. Yes it's been difficult setting up the required inspection system but there are many advantages here that will help you not only with your government contracts but with your civilian contracts as well. Your maintaining better product quality throughout your entire production system. Now you know that your shipments won't be rejected. Quality control means faster shipping less warehouse space and much quicker payments. You're doing your own inspection from now on. Would you like to see quality control in action? Alright, let's look at one in the general supplies, equipment and parts field. Of course the quality control program applies to every contractor who supplies the government. No matter what the article under production a system of quality control is a necessary management tool across the board. General supplies, equipment and parts include the manufacture of thousands and thousands of different items. This is a medium-sized plant which manufactures among other things tableware for the government. For some time this plant has had a complete quality control program a program tailored to the needs of its production system. Quality control begins the moment that raw materials are received. Almost every item that is used in the production or packing of the tableware must meet rigid specifications before being used. In most cases suppliers guarantee that their products are up to standard. This stainless steel for example is certified as meeting government requirements. Nevertheless to assure quality a sample from each shipment is sent to the plant's own laboratory for testing. Where testing is to be performed it is up to management to choose between setting up its own laboratory or employing an outside commercial lab. In making such a choice economy and the reliability of results are the main factors for management to consider. For its management's job to administer the quality control program and to see that it is effective. Supervision of quality control is an executive function. Of primary importance at this level is the maintenance and evaluation of meaningful records. These include reports on all incoming raw materials. They may be in the form of supplier certificates or reports from an outside commercial laboratory or from the plant's own lab. But they provide assurance that every material used in the production or packing of tableware conforms to specifications. The reports also cover the findings of the in-process inspectors who control quality during manufacturing. Keeping all records complete and up to date is important. But in addition management also periodically visits all inspectors to see that they are doing their jobs effectively. To see that their reports mean what they say. Typical of the items produced here is a stainless steel table spoon. During the preliminary stages of its manufacture this plant uses a roving inspector whose job is to check on the first five operations of the production line. It is the inspector's duty to see that each of the machines under his supervision is properly in control and that as the spoon passes from operation to operation it is correctly formed. At each step the rough spoons must be inspected for burrs, dimensions, holes or dirt marks, and straightness. Records at each station assure management that the quality control function is being properly executed. A Rockwell testing machine supplements visual examination. In verifying precise calibrations it assures that the spoon meets specifications throughout manufacturing as required in the contract. All inspectors are responsible directly to management. Most of the inspection stations work on a sampling basis examining a few spoons from each tray of production rather than attempting to examine every single item. Defects are classified as either major or minor. If the number of defects found exceeds the allowable limit the entire tray is rejected. These spoons will be fed back into the production line for reworking. Of course what you have seen is not the entire in-process inspection system. There are numerous other points which check not only the spoons themselves but the machines that produce them making sure that every die, every tool is properly under control. In addition there is also a careful and thorough end item inspection. Few defects no matter how small escape the eyes of the skilled end item inspector. This spoon is rejected because it is flawed. To supplement the visual check there is also an examination which is performed using small measuring gauges. Spoons are inspected for length, width of the bowl and of the handle. All according to the specifications of the contract. This complete end item inspection assures the plant management that it has a finished acceptable quality product. The role of the government inspector is substantially changed. He is now primarily a verification inspector. His function is to see that the contractor is maintaining proper records and meeting his other contractual obligations. For as the quality control system is tailored to each plant so the amount of verification inspection is also tailored according to each plant's past performance record. Since the past performance record of this firm has been highly satisfactory the inspector is usually satisfied to check the contractor's records and perform only a minimum of sampling to verify the results of the contractor's system. Thanks to good management and the good product reputation of this plant verification inspection is greatly reduced here. And thanks to quality control this company has a more efficient, more profitable operation. Shipping sooner means less storage space and quicker payments. For quality control is not a theory. It is a highly practical means of obtaining a more economical production. It also serves the government by assuring quick supply of our armed forces. Today every civilian contractor can truly say quality control is our business.