Professor Smith was discussing TQM with his accounting class. A student asked how TQM principles might be applied to a university setting. Smith replied, "There seems to be a great deal of confusion among many academics about the application of TQM principles to the classroom. Students are not customers; they are work in process. The customers of a university are the companies that hire our students upon graduation."

\section*{Required}

A. Respond to Professor Smith's comment.

B. Identify three more customers of a university. Indicate if they are internal or external.

C. Using the concepts presented in Exhibit 2 in this chapter, explain the types of decisions university administrators may face when implementing TQM principles.