*Introduction to Total Quality Management IMPORTANCE OF LEADERSHIP AND COMMITMENT

Competitive advantage Quality management is an approach where full

commitment is needed from the entire firm. In order for
TQM to work effectively, the management clear
strategic overview of quality and guide the entire firm
towards adopting TQM.

COMMITMENT

In order to increase business efficiency and product

quality through TQM, the entire form should be
committed from top to the toe. As the leaders of an
organization, the senior management should show
leadership and initiative and pass on the spirit down to
the middle management who then will communicates
the whole thing to their teams
Quality
CHANGE
Quality is one of the most important aspects of a
business or a product, as it could be associated with Change is hard for many and if it involves a whole
many factors such as reliability, delivery, usability, and organization then it requires significant amount of
an acceptable price. effort. The cultural change and acquisition of a new
attitude towards successful implementation of TQM
Quality can have different meanings for different
should be supported by everybody taking its power
customers as it could also reflect many different facts in
from a well drafted mission statement serving the
one term. A reputation for quality is an invaluable asset
purposes of good quality management.
for a company, and it takes time to build it; however it
can be ruined pretty easily. SIX SIGMA

Quality is simply meeting the customer requirements In 1980s Six Sigma was developed in search of a better
and as mentioned earlier quality can be associated with quality management. Six Sigma is a set of statistical
many different aspects of a product or service. Although tools adopted within the quality management to
quality is defined by the customers' requirements, a construct a framework for process improvement.
quality product could also mean meeting the minimum
Six Sigma has evolved to become an extension to Total
specifications set to get a job done which could occur in
Quality Management (TQM).8 General Electric defines
the construction sector, health care and aviation etc.
Six Sigma as a highly disciplined process that helps them
Total Quality Management focus on developing and delivering near-perfect
products and services.
TQM is a set of management practices throughout the
organization geared to ensure the organization BENCH MARKING
consistently meets or exceed customer requirements.
Continuous improvement and achieving better can
TQM requires the participation and happen only if the current performance is compared to
commitment of all players in the process, from the previously defined standards. Benchmarking is a way of
production employees up to the senior management. measuring performance where the current performance
of the company is compared and scored towards a set
Culture plays a significant role when it comes to the
of targets or competitors' performance could be taken
TQM's success. The quality chains and the processes
as targets as well.
they cover are at the heart of the TQM model.
LEAN PRODUCTION
Lean production is basically doing more with less. Lean long–term success through customer
is a production practice that considers the expenditure satisfaction. In a TQM effort, all members of an
of resources for any goal other than the creation of organization participate in improving processes,
value for the end customer to be wasteful and thus a products, services, and the culture in which
target for elimination; basically, more value with less they work.
work.
• Total Quality Management TQM, or total
productive maintenance, describes a
management approach to long-term success
JUST IN TIME PRODUCTION
through customer satisfaction. In a TQM effort,
brings efficiency to the entire production floor, reduces all members of an organization participate in
time and error risks. The only downside in JIT is the improving processes, products, services, and
need for reliable, efficient and flexible suppliers since the culture in which they work.
the company operating under JIT will keep minimum
• Total quality management (TQM) consists of
raw material stocks and will need continuous delivery of
organization-wide efforts to install and make
raw materials whenever needed, in short time intervals
permanent a climate in which an organization
if need be.
continuously improves its ability to deliver high-
LIMITATIONS quality products and services to customers.
While there is no widely agreed-upon approach,
• Demands a Change in Culture
TQM efforts typically draw heavily on the
• Demands Planning, Time and Resources previously developed tools and techniques of
quality control. TQM enjoyed widespread
• Quality is Expensive
attention during the late 1980s and early 1990s
• Takes Years to Show Results before being overshadowed by ISO 9000, Lean
manufacturing, and Six Sigma.
• Discourages Creativity
Quality, then is simply meeting the customer
• Not a Quick-Fix Solution
requirements, and this has been expressed in many
PRINCIPLES OF TOTAL QUALITY MANAGEMENT ways by other authors:

• Customer focus • ‘Fitness for purpose or use’ – Juran, an early

doyen of quality management.
• Total employee commitment
• ‘The totality of features and characteristics of a
• Process approach product or service that bear on its ability to
• Integrated system satisfy stated or implied needs’ – BS 4778: 1987
(ISO 8402, 1986) Quality Vocabulary: Part 1,
• Strategic and systematic approach International Terms.
• Continual improvement • ‘Quality should be aimed at the consumer's
• Fact-based decision making needs, present and future’ – Deming, another
early doyen of quality management.
• Communications
• ‘The total composite product and service
(2ND PPT) characteristics of marketing, engineering,
CHAPTER 1 manufacture and maintenance through which
the product and service in use will meet the
• A core definition of total quality management expectation by the customer’ – Feigenbaum,
(TQM) describes a management approach to
 the first man to write a book with ‘Total Quality’ should assess how much time they spend doing the
in the title. right things right.

• ‘Conformance to requirements’ – Crosby, an

American consultant famous in the 1980s.

• ‘Degree to which a set of inherent

characteristics fulfils requirements’ – ISO (EN)
9000:2000 Quality Management Systems –
fundamentals and vocabulary.

Quality, competitiveness and customers

The reputation enjoyed by an organization is built by

Quality of design
quality, reliability, delivery, and price. Quality is the
most important of these competitive weapons.

Reputations for poor quality last long, and good or bad

reputations can become national or international. The
management of quality can be learned and used to
improve reputation.

Quality is meeting the customer requirements, and

this is not restricted to the functional characteristics of
the product or service.

Reliability is the ability of the product or service to

continue to meet the customer's requirements over
time.
Quality of conformance to design
Organizations ‘delight’ customers by consistently
meeting customer requirements, achieving a reputation
of ‘excellence’ and customer loyalty.

Understanding and building quality chains

. These form the so-called ‘quality chains’, the core of

‘company-wide quality improvement’.

The internal customer/supplier relationships must be

managed by interrogation, i.e. using a set of questions
at every interface. Measurement of capability is vital.

Quality Chains
• Quality control, then is essentially the activities
Understanding and building quality chains and techniques employed to achieve and
maintain the quality of a product, process, or
There are two distinct but interrelated aspects of
service. It includes a monitoring activity but is
quality: design and conformance to design. Quality of
also concerned with finding and eliminating
design is a measure of how well the product or service
causes of quality problems so that the
is designed to achieve the agreed requirements. Quality
customer's requirements are continually met.
of conformance to design is the extent to which the
product or service achieves the design. Organizations
 • Quality assurance is broadly the prevention of
quality problems through planned and
systematic activities (including documentation).
These will include the establishment of a good
quality management system and the
assessment of its adequacy, the audit of the
operation of the system, and the review of the
system itself.

QUALITY STARTS WITH UNDERSTANDING THE NEEDS

1. Marketing processes establish the true

requirements for the product or service. These
must be communicated properly throughout
the organization in the form of specifications.

2. Excellent communication between customers

and suppliers is the key to total quality
performance – the organization must establish
feedback systems to gather customer  Principles of TQM:
information.
Management Commitment
3. Appropriate research techniques should be
used to understand the ‘market’ keep close to 1. Plan (drive, direct)
customers, and maintain the external 2. Do (deploy, support, participate)
perspective. 3. Check (review)
4. Act (recognize, communicate, revise)
QUALITY IN ALL FUNCTIONS
Employee Empowerment
All members of an organization need to work together
1. Training
on organization-wide quality improvement. The co-
2. Suggestion scheme
operation of everyone at every interface is necessary to
3. Measurement and recognition
achieve performance improvements, which can only
4. Excellence teams
happen if the top management is committed
Fact Based Decision Making
Total Quality Management (TQM)
1. SPC (statistical process control)
2. DOE, FMEA
3. The 7 statistical tools
4. TOPS (Ford 8D – team – oriented problem
solving)
Continuous Improvement

1. Systematic measurement and focus on

CONQ
2. Excellece teams
3. Cross – functional process management
4. Attain, maintain, improve standards
Customer Focus

1. Supplier Partnership
 2. Service relationship with internal customers Self-managed work teams are one form of
3. Never compromise quality empowerment.
4. Customer driven standards
3. Process-centered

A fundamental part of TQM is a focus on process

thinking. A process is a series of steps that take inputs
from suppliers (internal or external) and transforms
them into outputs that are delivered to customers
(again, either internal or external). The steps required
to carry out the process are defined, and performance
measures are continuously monitored in order to detect
unexpected variation.

4. Integrated system

Although an organization may consist of many different

functional specialties often organized into vertically
 Total Quality Management Principles: structured departments, it is the horizontal processes
interconnecting these functions that are the focus of
The 8 Primary Elements of TQM are as follows –
TQM.
Total quality management can be summarized as a
Micro-processes add up to larger processes, and all
management system for a customer-focused
processes aggregate into the business processes
organization that involves all employees in continual
required for defining and implementing strategy.
improvement. It uses strategy, data, and effective
Everyone must understand the vision, mission, and
communications to integrate the quality discipline into
guiding principles as well as the quality policies,
the culture and activities of the organization. Many of
objectives, and critical processes of the organization.
these concepts are present in modern Quality
Business performance must be monitored and
Management Systems, the successor to TQM.
communicated continuously.
 Here are the 8 principles of total quality
An integrated business system may be modelled after
management:
the Baldrige National Quality Program criteria and/or
1. Customer-focused incorporate the ISO 9000 standards. Every organization
has a unique work culture, and it is virtually impossible
The customer ultimately determines the level of quality.
to achieve excellence in its products and services unless
No matter what an organization does to foster quality
a good quality culture has been fostered. Thus, an
improvement—training employees, integrating quality
integrated system connects business improvement
into the design process, upgrading computers or
elements in an attempt to continually improve and
software, or buying new measuring tools—the customer
exceed the expectations of customers, employees, and
determines whether the efforts were worthwhile.
other stakeholders.
2. Total employee involvement
5. Strategic and systematic approach
All employees participate in working toward common
A critical part of the management of quality is the
goals. Total employee commitment can only be
strategic and systematic approach to achieving an
obtained after fear has been driven from the workplace,
organization’s vision, mission, and goals. This process,
when empowerment has occurred, and management
called strategic planning or strategic management,
has provided the proper environment. High-
includes the formulation of a strategic plan that
performance work systems integrate continuous
integrates quality as a core component.
improvement efforts with normal business operations.
6. Continual improvement 3. Organization – wide – TQM involves every
department or division.
A major thrust of TQM is continual process
4. Continuous improvement – Quality
improvement. Continual improvement drives an
improvement is a never – ending journey.
organization to be both analytical and creative in finding
ways to become more competitive and more effective
5. Strategic focus – Quality is viewed as a
at meeting stakeholder expectations. strategic, competitive weapon.
6. Process management – TQM adopts the
7. Fact-based decision making concept of prevention through process
In order to know how well an organization is management.
performing, data on performance measures are 7. Chang in corporate culture – TQM
necessary. TQM requires that an organization involves the creation of a work culture that
continually collect and analyze data in order to improve is conducive to quality improvement.
decision making accuracy, achieve consensus, and allow Benefits of TQM:
prediction based on past history. TQM has numerous benefits. It enables organizations
8. Communications to:

During times of organizational change, as well as part of a) attain higher profitability and increased market
day-to-day operation, effective communications plays a share
large part in maintaining morale and in motivating b) improve customer satisfaction
employees at all levels. Communications involve
strategies, method, and timeliness. c) improve organizational productivity

d) improve employee morale and job satisfaction

e) create a positive work culture

f) undertake systematic problem solving and

decision making through project teams

g) improve teamwork

h) create a climate conducive to continuous

improvement

 Features of TQM:

1. Customer – oriented – TQM focuses on

customer through creation of better quality
products services at lower costs.
2. Employee involvement and empowerment
– Teams focus on quality improvement
projects and employees are empowered to
serve customers well.
 The Concept of Continuous Improvement by
TQM:

TQM is mainly concerned with continuous

improvement in all work, from high level strategic
planning and decision-making, to detailed execution
of work elements on the shop floor. It stems from
the belief that mistakes can be avoided and defects
can be prevented. It leads to continuously
improving results, in all aspects of work, as a result
of continuously improving capabilities, people,
processes, technology and machine capabilities.

Continuous improvement must deal not only with

improving results, but more importantly with
improving capabilities to produce better results in
the future. The five major areas of focus for
capability improvement are demand generation,
supply generation, technology, operations and
people capability.

A central principle of TQM is that mistakes may be

made by people, but most of them are caused, or at
least permitted, by faulty systems and processes.
This means that the root cause of such mistakes can
be identified and eliminated, and repetition can be
prevented by changing the process.

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring

(mistake-proofing or poka-yoke).

2. Where mistakes can’t be absolutely prevented,

detecting them early to prevent them being
passed down the value-added chain (inspection
at source or by the next operation).

3. Where mistakes recur, stopping production

until the process can be corrected, to prevent
 Implementation Principles and Processes:
the production of more defects. (stop in time).
 A preliminary step in TQM implementation is to
assess the organization’s current reality.

 Relevant preconditions have to do with the

organization’s history, its current needs,
precipitating events leading to TQM, and the
existing employee quality of working life.
 If the current reality does not include important  A crisis, if it is not too disabling, can also help
preconditions, TQM implementation should be create a sense of urgency which can mobilize
delayed until the organization is in a state in people to act.
which TQM is likely to succeed.
 In the case of TQM, this may be a funding cut or
 If an organization has a track record of effective threat, or demands from consumers or other
responsiveness to the environment, and if it has stakeholders for improved quality of service.
been able to successfully change the way it After a crisis, a leader may intervene
operates when needed, TQM will be easier to strategically by articulating a new vision of the
implement. future to help the organization deal with it. A
plan to implement TQM may be such a strategic
 If an organization has been historically reactive
decision.
and has no skill at improving its operating
systems, there will be both employee  Such a leader may then become a prime mover,
scepticism and a lack of skilled change agents. If who takes charge in championing the new idea
this condition prevails, a comprehensive and showing others how it will help them get
program of management and leadership where they want to go. Finally, action vehicles
development may be instituted. are needed and mechanisms or structures to
enable the change to occur and become
 A management audit is a good assessment tool
institutionalized.
to identify current levels of organizational
functioning and areas in need of change. Implementation of Quality:

 An organization should be basically healthy  The implementation of total quality is similar to

before beginning TQM. that of other decentralized control methods. In
developing TQM, companies need to
 If it has significant problems such as a very
understand how consumers define quality in
unstable funding base, weak administrative
both goods and services offered. If a company
systems, lack of managerial skill, or poor
pays more attention to quality in its production
employee morale, TQM would not be
processes, fewer problems are bound to occur
appropriate.
when the product is in the customers’ hands.
 However, a certain level of stress is probably Management should make a commitment to
desirable to initiate TQM. People need to feel a measure the performance of a product relative
need for a change. to its quality through customer surveys, which
can help managers to identify design,
 Kanter (1983) addresses this phenomenon be
manufacturing or any other process that has a
describing building blocks which are present in
bearing on the quality of a product or service,
effective organizational change.
and therefore provide an opportunity for
 These forces include departures from tradition, continuous improvement.
a crisis or galvanizing event, strategic decisions,
 An obstacle is an object, a thing, an action or a
individual “prime movers,” and action vehicles.
situation that causes an obstruction. Obstacles
 Departures from tradition are activities, usually can be physical, social, economic, technological
at lower levels of the organization, which occur or political. There are a number of barriers that
when entrepreneurs move outside the normal face the process of TQM implementation.
ways of operating to solve a problem.
 Discussed below are some of the barriers or
obstacles that total quality management face
during implementation. Most scholars who
 have researched on the subject choice to focus  These attitudes often are expressed in popular
on the specific industries like the construction, sayings, such as “It’s not my job” and “If I am
Agriculture etc. and specific economies. What not broke, don’t fix it.
we came up with are general barriers that are
 Such attitude sayings stem from the popular
likely to cut across the economic board.
notion that management is always right and
I. Competitive markets therefore employees are” only supposed to
 A competitive market is a driving force implement management decisions without
behind many of the other obstacles to questioning.
quality.
 Lethargy is further propagated through
 One of the effects of a competitive market is management’s failure to train employees on
to lower quality standards to a minimally TQM fundamentals that build better attitudes
acceptable level. by involving them in teams that identify and
 This barrier to quality is mainly a mental solve problems.
barrier caused by a misunderstanding of the
definition of quality.  Such training can transform employees from
 Unfortunately, too many companies equate being part of the problem to part of the
quality with high cost. Their definition leads solution.
to the assumption that a company can’t  This will foster motivation and creativity and
afford quality. build productive and healthy attitudes that
 A broader definition needs to be used to focus employees on basic fundamentals, such
look at quality, not only in the company’s as: keep customer needs in mind, constantly
product, but in every function of the look for improvements, and accept personal
company. responsibility for your work.
 All company functions have an element of
quality.
 If the quality of tasks performed is poor, 3. Lack of leadership for quality
unnecessary cost is incurred by the company
• Excess layers of management quite often lead
and, ultimately, passed to the customer.
to duplication of duty and responsibility.
 TQM should work by inspiring employees at
every level to continuously improve what • This has made the lower employees of an
they do, thus rooting out unnecessary costs. organization to leave the quality
 Done correctly, a company involved with implementation to be a management’s job.
TQM can dramatically reduce operating
• In addition, quality has not been taken as a
costs. joint responsibility by the management and the
 The competitive advantage results from employees.
concentrating resources (the employees’
brainpower) on controlling costs and • Coupled with the notion that management is
improving customer service. infallible and therefore it is always right in its
 2. Bad attitudes/abdication of decisions, employees have been forced to take
responsibility/management infallibility up peripheral role in quality improvement. As a
result employees who are directly involved in
 The competitive environment, poor the production of goods or delivery of services
management practice, and a general lack of are not motivated enough to incorporate
higher expectations have contributed to quality issues that have been raised by the
unproductive and unhealthy attitudes. customers they serve since they do not feel as
 part of the continuous process of quality  There is paltry budgetary allocation
improvement. made towards employee training and
development which is critical for
• Moreover, top management is not visibly and
total quality management
explicitly committed to quality in many
organizations.
implementation.
 Employee training is often viewed as
unnecessary cost which belittles the
4. Deficiency of cultural dynamism profits margins which is the primary
objective for the existence of
• Every organization has its own unique way of businesses and as a result TQM has
doing things. been neglected as its implementation
• This is defined in terms of culture of the “may not necessarily bring gains to
organization. the organization in the short term”.

• The processes, the philosophy, the procedures

and the traditions define how the employees 6. Lack of customer focus
and management contribute to the • Most strategic plans of organizations are not
achievement of goals and meeting of customer driven.
organizational objectives.
• They tend to concentrate much on profit-
• Indeed, sticking to organizational culture is oriented objectives within a given time frame.
integral in delivery of the mission of the Little (if any) market research is done to
organization. ascertain the product or service performance in
• However, culture has to be reviewed and for the market relative to its quality.
that matter re-adjustments have to be done in • Such surveys are regarded by most
tune with the prevailing economic, political, organizations as costly and thus little concern is
social and technological realities so as to shown to quality improvement for consumer
improve on efficiency. satisfaction.
• In adequate cultural dynamism has made total 7. Lack of effective measurement of quality
quality implementation difficult because most improvement
of the top level management of many
organizations are rigid in their ways of doing • TQM is centered on monitoring employees and
things. processes, and establishing objectives that
anticipate the customer's needs so that he is
5. Inadequate resources for total quality surprised and delighted.
management
 Since most companies do not involve • This has posed a considerable challenge to
quality in their strategic plan, little many companies.
attention is paid to TQM in terms of • Measurement problems are caused by goals
human and financial resources. based on past substandard performance, poor
 Much of the attention is drawn to planning, and lack of resources and competitor-
increasing profit margins of the based standard.
organization with little regard as to
• Worse still, the statistical measurement
whether their offers/ supply to
procedures applied to production are not
customers is of expected quality.
applicable to human system processes.
 8. Poor Planning • A quality implementation program will succeed
only if top management is fully committed
• The absence of a sound strategy has often
beyond public announcements. Success
contributed to ineffective quality improvement.
requires devotion and highly visible and
• Duran noted that deficiencies in the original articulate champions.
planning cause a process to run at a high level
• Newell and Dale (1990) found that even
of chronic waste. Using data collected at then
marginal wavering by corporate managers was
recent seminars, Duran (1987) reported that
sufficient to divert attention from continuous
although some managers were not pleased with
improvement.
their progress on their quality implementation
agenda, they gave quality planning low priority. • Additionally, Schein (1991) reported that the
As Oakland (1989) said, the pre-planning stage U.S. Quality Council is most troubled by the lack
of developing the right attitude and level of of top management commitment in many
awareness is crucial to achieving success in a companies.
quality improvement program.
• Lack of commitment in quality management
• Newell and Dale (1990) in their study observed may stem from various reasons.
that a large number of companies are either
• Major obstacles include the preoccupation with
unable or unwilling to plan effectively for
short-term profits and the limited experience
quality improvement.
and training of many executives.
• Although many performed careful and detailed
• Duran, for example, observed that many
planning prior to implementation, not one of
managers have extensive experience in
the firms studied or identified beforehand the
business and finance but not in quality
stages that their process must endure.
improvement.
• Perhaps the root cause of poor plans and
• Similarly, Bothe (1988) pointed out that
specifications is that many owners do not
although the CEO does not have to be a quality
understand the impact that poor drawings have
expert, programs fail when the CEO does not
on a project’s quality, cost, and time. Regardless
recognize the contribution these techniques
of the cause, poor plans and specifications lead
make toward profitability and customer
to a project that costs more, takes longer to
satisfaction.
complete, and causes more frustration than it
should. • Top management should, therefore, embrace
quality improvement programs no matter how
• Companies using TQM should always strive
far reaching the programs may appear the
towards impressing upon owners the need to
monetary implications therein. Competition
spend money and time on planning.
alone should not be considered as the single
• If management took reasonable time to plan factor that drives managers into implementing
projects thoroughly and invest in partnering to quality initiatives.
develop an effective project team, a lot could
10. Resistance of the workforce
be achieved in terms of product performance as
these investments in prevention- oriented
management can significantly improve the
• A workforce is often unwilling to embrace TQM
quality of the goods or services offered by an
for a variety of reasons.
organization

9. Lack of management commitment

• Oakland (1989) explained that a lack of long- development and implementation of a quality
term objectives and targets will cause a quality program. .
implementation program to lose credibility.
• For a company to produce a quality product,
• Keys (1991) warned that an adversarial employees need to know how to do their jobs.
relationship between management and non- For TQM to be successful, organizations must
management should not exist, and he commit to training employees at all levels.
emphasized that a cooperative relationship is
• TQM should provide comprehensive training,
necessary for success.
including technical expertise, communication
• A TQM project must be supported by employee skills, small-team management, problem-solving
trust, acceptance and understanding of tools, and customer relations.
management's objectives .
• Conclusion and recommendation:
• Employees ,therefore, should be recognized by
The advantage of TQM have been widely
the management as vital players in the decision
discussed but the challenges of implementation
making processes regarding to quality
have received a little attention.
improvement as involving them would have
motivating effect on implementation of quality  A quality philosophy is required for the
programs. successful implementation of a quality project.
This philosophy must facilitate a long-term
11. Lack of proper training/Inadequate Human
Resource Development
lifestyle change for a company.
 Commitment of top management is essential.
 Substantial inflow of resources adequate
• There is evidence that lack of understanding training workforce participation and effective
and proper training exists at all levels of any measurement techniques are some of the key
organization, and that it is a large contributor to success factors.
worker resistance.  A successful TQM program is unique, and it
should motivate middle management to focus on
• Schein (1990), for example, mentioned that long-term strategies rather than short-term
business school failure to teach relevant goals.
process skills contributed to manager  Teamwork is the key to involvement and
ineffectiveness.
participation.
• TQM requires a well-educated workforce with a  Groups should be encouraged to work closely
solid understanding of basic math, reading, and effectively, and should focus on quality
writing and communication. Although improvement and customer satisfaction.
companies invest heavily in quality awareness, All organizations should focus on the following for
statistical process control, and quality circles, successful TQM implementation:
often the training is too narrowly focused.
1. Create consistency of purpose toward
• Frequently, Duran’s warning against training for improvement of the product and service so as
specific organizational levels or product lines is to become competitive, stay in business and
unheeded. provide jobs.

• This has also been underscored by Newell and 2. Cease dependence on mass inspection; require,
Dale who argue that poor education and instead, statistical evidence that quality is built
training present a major obstacle in the on.
3. Adopt the new philosophy. We are in a new
economic age. We no longer need live with
commonly accepted levels of delay, mistake,
defective material and defective workmanship.

4. Improve the quality of incoming materials. End

the practice awarding business on the basis of
price alone. Instead, depend on meaningful
measures of quality, along with price.

5. Find the problems; constantly improve the

system of production and service. There should
be continual rise in productivity and a decrease
in costs.