This is the approach that was used at Mack Trucks where TQM brought considerable benefit through increased productivity and decreased costs over the period when the TQM program was implemented at the organization (Jocou & Nuelle, 1996).
The startup approach has the advantage of providing the greatest integration of all components of a TQM system. In this approach, workers are educated as to what to expect and how to interact with the TQM system from the initial phases of the project, with the result that workers and managers alike present little resistance to change when the system is actually implemented. In an ideal startup situation, workers receive training as to their responsibilities at the same time that the system is being designed. Special equipment and modifications to plant layout are accomplished at the same time, and the human resources department evaluates and designs a compensation structure that recognizes the new responsibilities of each department and their contribution to the success of the entire company. Typically, such compensation packages include some type of profit-sharing or gainsharing program (Higginson & Waxler, 1994). Of course, compensation in the public sector is typically not subject to such modification.
The retrofit approach takes a current organization and imposes a TQM system on top of that organization. Changes are made to TQM procedures in order to fit the organization, and other changes are made to the organization in order to take the maximum benefit of the TQM system. The chief advantage of this approach is that it does not require that a plant or a company shut down during the time that the system is implemented. Instead, the changes are made while the company or plant is operating, with training provided on an as-needed basis and equipment brought in only when necessary. Since most organizations are ongoing concerns, this is typically the approach that has been used in the past ...
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