In The New Economics (page 10 - 13), Dr. Deming does write:
No Defects, no jobs. Absence of defects does not necessarily build business, does not keep the plant open. Something more is required. In the case of automobiles, for example, the customer - the one that keeps the plant open and running - may be interested in performance. ...
Performance and style, whatever these words mean in the minds of the customers, must show constant improvement. Zero defects is not sufficient.
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I believe Dr. Ackoff has also spoken about defects - that the removal of defects does not necessarily leave one with a superior product. He gives the example of a TV remote. You may "eliminate defects" by flipping from one defective show to the next, but your actions do nothing to CREATE a better show.