al benchmarks of TQM measurement: "Quality devotees grew obsessed with methodology--cost-cutting, defect reduction, quicker cycle times, continual improvement" (Greising, 1994, p. 56). An example is Varian Associates Inc., a scientific equipment maker. During the 1980s, Varian embraced the TQM movement with fervor. The company put 1,000 of its management staff on a four-day seminar on quality: "The company's Silicon Valley headquarters buzzed with quality-speak" (Greising, 1994, p. 54).
Varian virtually reinvented its business in its implementation of quality standards. The resulting improvements in quality control were astounding. Varian increased on-time delivery by 50 percent, its customer service department ranked Number One in the industry for prompt customer visits, and its semiconductor unit cut the time it took to produce new designs by two weeks (Greising, 1994, p. 54).
Unfortunately, Varian staff became so obsessed with meeting production schedules that it grew lax in returning customer calls and taking the time to instruct customers in the use of its equipment. In other words, customers felt rushed. As a result, customers defected to the competition and Varian posted a $4.1 million loss in 1990. In the words of one Varian executive, "All of the quality-based charts went up and to the right, but everything else went down" (Greising, 1994, p. 54). Varian has since begun rethinking its focus on statistical measurements of TQM improvement and is emphasizing less expensive methods to ensure customer satisfaction.
The experience of Varian and other American companies caught up in the quality revolution underscores the need to focus on the return on quality. Managers must make sure that improvements in quality address customer needs. Quality that means little to the customer is a waste of time because it will not result in improved sales, profits or market share.
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