WHEN TIMES GET TOUGH, WHAT HAPPENS TO TQM

When Mueller Chemical Company's biggest customer, Ameriton, demand tha t MCC install a total quality management system five years ago, the ef fort seemed worth it. Morale improved dramatically at the German compa ny, as did quality and productivity. But now, in this fictional case s tudy, Ameriton has gone bankrupt. As a result, MCC has had to cut its work force, and senior managers are meeting to decide whether TQM shou ld be part of the downsized MCC. Horst Koblitz, director of TQM, and D ivision Manager Eva Stichen both vote yes. Stichen's division, which n ever supplied Ameriton, has turned its process-control system into the company's best thanks to TQM. The division is more cost-efficient, pr oduct defects are nearly nonexistent, and its safety record is spotles s. As Koblitz notes, Ameriton's failure is no reason to abandon all th at MCC has built. Furthermore, shareholders and customers would think that MCC was panicking. MCC just needs to tailor its TQM program to a smaller organization. But CFO Georg Becker doesn't think MCC has the t ime or resources for fine-tuning. And as he sees it, that might be jus t as well. The distractions that came with TQM took MCC away from its goal of becoming the chemicals market leader in Europe. While the comp any organized teams, developed measurement systems, and filled out qua lity reports, its competitors took away much of the market share MCC w as after. TQM was a good long-term approach, but it didn't come with a plan for MCC's current situation. And CEO and Chairman Dieter Mueller won't compromise; TQM must either stay or go. Seven experts in TQM an d organizational change consider whether TQM has a place in MCC's rest ructuring.