Reliance Control Systems is a large manufacturer of control systems for the electrical power generation and distribution industry. Over the past few years, Reliance has watched overseas competitors take away market share with products that are priced lower and that, at the same time, have developed a reputation for better reliability. The company is not in a dangerous position yet, but the Board of Directors wants to see a concerted effort to improve the company’s competitive posture. Among the senior management, two factions have developed. One, led by the vice president of operations, is pressing the CEO to implement total quality management.

After all, the aim of TQM is improved competitiveness, and that is just what is needed. On the other hand, the manufacturing vice president (VP) and the director of quality assurance are making the case for ISO 9000:2000.

QUESTIONS

1. Assume that you are siding with the VP of operations, and list the arguments for implementing TQM.

2. Now assume that you are with the heads of manufacturing and quality assurance. List the arguments for ISO 9000.

3. You have heard both sets of arguments, and you believe there might be a third approach that could satisfy both factions. What would you propose?