This exploratory research on a decade of Total Quality Management in one fa
ctory opens up the black box of the learning curve. Based on the organizati
onal learning literature, we derive a quality learning curve that links dif
ferent types of learning in quality improvement projects to the evolution o
f the factory's waste rate. Only 25% of the quality improvement projects-wh
ich acquired both know-why and know-how-accelerated waste reduction. The ot
her 75% of the projects either impeded or did not affect waste reduction. I
n complex and dynamic production environments, locally acquired knowledge i
s difficult to disseminate. The combination of know-why and know-how facili
tates its dissemination.