The economy of our nation differs today from that of World War II or pre-World War II days by the fact that a war-production program is being carried on without adversely affecting the production or civilian goods, At the same time management is confronted with rising costs due to the inflationary spiral of wanes and materials. To mire a profit on Products and remain in competition, management is forced to apply the latest cost reduction methods. Because of the dual economy, companies are quoting on civilian goods and war Products. Contracts released by the government specify that; adequate inspection and quality control procedures should be available in plants or that a procedure should be available if a contract is desired.

During World War II statistical quality control was initiated in a considerable number of plants. Programs of training were sponsored by the War Production Board. The Department of Defense has a Military Standard (MIL-STD-105A) stressing procedures for statistical inspection, and the American War Standards Association has issued requirements for quality control. Today's literature is abundant with featured articles in the leading trade journals stressing Quality control and its cost reduction aspects. Thus, quality control methods have become a prominent part of management today and are assuming equal importance with such cost reduction methods as time and motion study, methods and plant layout.

This thesis deals with the practical aspects of Inspection and Quality Control as a means of cost reduction. in establishing the present need for cost reduction by inspection and quality control the discussion is centered on cost of rejects in a small plant hereinafter referred to as "the company" or "the plant". A small company employing approximately 200 employees has been selected. The company is a job shop and manufactures sheet metal products.

Large and small companies have successfully employed statistical methods with reductions in costs. Therefore, it is the purpose of this thesis to present a sound basis for s quality control program in a small company so that a foundation may exist for the application of statistical quality control.

General quality control programs and their relationship to inspection will be discus sed. Present cost-reduction methods in the company are presented to determine whether cost reduction has been attempted by investigation of quality control methods. Cost of rejects in the present system are analyzed to determine if cost reduction can be effected by closer control of quality.

The success of any program depends on the people who carry it out; hence a discussion of organization and personnel is included so that the program may be "sold" to the employees. Included are brief discussions of successful quality control programs of other companies so that the value of such programs may be demonstrated.

The main conclusion is drawn by analyzing the company's present quality control program through the application of the fundamentals of scientific management.

The author is grateful to Professor Oliver J. Sizelove, Executive Associate of the Department of Management and Personnel in the Newark College of Engineering for his assistance and guidance in the Preparation of this paper, and to Frederick MA Burt who read and criticized the manuscript.

Permission has been granted by the publishers of the books used for reference to reproduce, in part, quotations from these books.