William Thien

Archive for June 2018

Now that the country’s economy is coming back due to the incredible Trump tax breaks as well as steps taken by previous administrations, I think it is time to take one more measure to ensure that the country’s industrial sector remains strong. It is time to incentivize quality in American industrial production.

Following World War II reconstruction of Japan included sending two men to rebuild Japan and Japanese industry. Those two men were General Douglas MacArthur and W. Edwards Deming.

We all know who Macarthur was. Deming on the other hand was a statistics professor at New York University who believed statistics could be used to improve the quality of industrial production. Without elaborating here on what Deming did for Japanese industry, it is safe to say it worked.

Just look at all of the products of Japanese origin that have displaced American made products, big ticket items no less, cars, motorcycles, electronics, you name it, for one major reason. QUALITY!

Americans are sick of paying for cars that fall apart after driving them off of the lot and they have been voting with their dollars for decades now by purchasing Japanese products. Japanese manufacturers have been so successful selling to Americans who are fed up with poorly made products that Japanese manufacturers now have the largest automotive production facilities in The United States. All of that is because of a quest for quality. All of that coming from a country the size of California, one state, with a population a fraction of The United States. That tells you what the power of quality is to the consumer. It is everything.

What the President and Congress can do now is to provide additional tax incentives for American industrial producers to improve quality measures on our own soil, here in The United States.

Measures taken by US based industries will have to be verifiable and should result in measurable (threshold) quality improvements in order for the tax incentives to be earned.

The tax incentives should be substantial in order to motivate US industrial producers to take action because often it is difficult to change production methodologies which can require changing industrial machinery (no small task) and retraining large numbers of employees (again, no small task).

We know the statistics professor’s efforts in Japan were successful 68 years after Deming visited Japan and the effects are massively visible today on our roads and in our homes.

It is time for The President and Congress to make something approaching Deming’s system of statistical analysis for quality improvement in Japan an achievable goal here in The United States by offering substantial tax incentives, which must be verifiable, to produce quality on a massive scale. Here. Not there. Here.

But it should not stop there. Statistics are not the only way to improve quality in industrial production. If a company can demonstrate that it has made changes to improve quality, capital investments, training regimens, whatever it takes, that should be incentivized as well.

The President and Congress should waste no time installing such tax incentives.

Now that the economy has become a global one for good, things can change overnight. The one thing industrial producers can do here in America is to ensure the global consumer has faith in US made products. The best way to do that is to constantly improve quality.

It is better to take such measures now, when the country’s economy is strong than when the country faces some form of economic depression such as following one of the several bubbles the country has faced in the last two decades. Then, companies are in a different mode, often downsizing, selling off capital, just to make ends meet.

Again, The President and Congress should waste no time installing such tax incentives to improve the production of quality in The United States.

This is not about a tax break for corporations, it is about an industrial movement, it is about ensuring a new age in American economic prosperity.

cc: The President of The United States

Congressman James Sensenbrenner

Copyright © William Thien 2018

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June 2018
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