The more entertaing version of this story goes: IBM asks Japanese manufacturer to make 100 boards, specifying 1% failure rate. On the day of the delivery from

The more entertaing version of this story goes: IBM asks Japanese manufacturer to make 100 boards, specifying 1% failure rate. On the day of the delivery from the manufacturer, the Japanese CEO comes to inspect the final shipment. After doing so, he discusses the contract with his chief engineer, and the engineer mentions the failure rate spec. The CEO nods, takes a board from a box, breaks it over his knee, and says "There is our failure rate".