Megraf is a large manufacturing organisation which is structured with a numberof supervisors each responsible for their own work production unit. Supervisors report to a team of senior managers who in turn are accountable to a ManagingDirector (MD). Operations are supported by Megraf's own finance, sales, distribution and human resource units.

Within the past two years, Megraf has implemented a series of initiatives aimed at reducing product defects and customer complaints. The initiatives have included the appointment of a few quality control inspectors to support supervisors. Despite these efforts, Megraf has lost some of its major customers to its competitors and its profits are declining.

After discussions with customers and suppliers, the MD has discovered that other companieswithin the same industry have successfully adopted a Total Quality Management (TQM) approach. At a recent senior management meeting he announced that a TQM programme would be introduced withinMegraf as a matter of priority. To support this,a Quality Committee will be established to oversee the programme's introduction and operation. He has taskedthe human resource unit to establish Quality Circles to meet on a regular basis and arrange training in TQM for all staff. The MD concluded by saying that TQM was vital to Megraf and that high quality 'will both put costs down and revenue up'.

 

1. Explain the requirements for achieving a Total Quality Management (TQM) approach within Megraf.  

1. Discuss the claim that high quality will both put costs down and revenue up'.