see:http://choo.fis.utoronto.ca/mgt/DM.case.html
Space Shuttle Challenger Case
(From The Knowing Organization, Chapter 5)
Morton-Thiokol Inc. had engineered the space shuttle's solid rocket booster (SRB) based on the Air Force's Titan III design because of its reliability. The SRB's steel case was divided into segments that were joined and sealed by rubber O-rings. Although the Titan's O-rings had occasionally been eroded by hot gases, the erosion was not regarded as significant. A second, redundant O-ring was added to each joint to act as back-up should the primary O-ring failed.
As early as 1977, a test of the SRB case showed an unexpected rotation of the joints which decompressed the O-rings making it more difficult for them to seal the joints. In 1980, a review committee concluded that safety was not jeopardized and the joints were classified as Criticality 1R, denoting that joint failure could cause loss of life or shuttle (the 1 in the rating); and that secondary O-rings provided redundancy (the R in the rating). During 1983, the SRBs were modified to use thinner walls, narrower nozzles, and more powerful fuel, which worsened the joint rotation. Tests showed that the rotation could be so large that a secondary O-ring could not seal a joint and provide redundancy. The R rating was consequently removed from the joints' Criticality classification. Nevertheless, many NASA and Thiokol documents produced over the next three years continued to list the Criticality as 1R, and seemed to suggest that neither management thought that a secondary O-ring could really fail to seal a joint.
In a flight readiness review of March 1984, NASA's top managers discussed and accepted the idea that some O-ring erosion was 'acceptable' because the ri ...