In manufacturing sites, quality improvement efforts continue to use percent defective as an indicator, but this evaluation is based on the manufacturers'own conditions, and does not conform to the evaluation in the field. Introduction of on-line quality engineering shows the essential manufacturing picture by providing a quantitative basis for repudiating the status quo and creating future value. Existing problems with process design can be solved,because on-line quality engineering reconstructs a system for creating on-line quality management process charts using loss functions, thereby improving manufacturing essentials by shifting from inspection to management, with attention to measurement, specifically measurement error and tolerance design decisions. This paper is a report on the results of such an endeavor, with a look at future issues and efforts.