years. Previously people thought in terms of quality control. Quality is defined asthe ability of the service provider to satisfy customer needs. Customer perception,service quality, and profitability are interdependent values. The idea of control wasthat the manufacturer decided to find the reasonable number of defects that acustomer would accept without demur. The goal of the exercise was to restrict thenumber of defects in order to be called a high-quality producer. This approach wasbased on two assumptions:Other producers under similar marketing conditions would adhere to similar normsof non-compliance or transgression of quality. Thus the issue of competition drivingup the quality was not taken seriously. Live and let live was the motto that mostlarge producers adhere to. The lack of serious quality improvement translates intosavings in production costs as elaborate effort for improvement was not done.Almost every customer assumed that the service or product received by them willnot be perfect in every respect. Customers took it for granted that luck was involvedin receiving high-quality goods and services. Thus, people would avoid carsassembled on Fridays or Mondays. It was assumed that during the pre-weekendphase, when the employees where focused on the forth coming weekend, and thepost-weekend phase , when the employees were physically and mentally tired fromtheir weekend exploits, they paid less attention to work. It was thus assumed thaton Fridays and Mondays, nobody would stop the assembly line for just a bolt notfitted at the appropriate place. People preferred cars which were driven from thefactory to the dealer’s premises rather than carried by trucks to the delivery points.Customers believed that inherent defects were bound to be uncovered during thispre-delivery phase, and, therefore they would be duly identified and rectified beforecustomer delivery. The total service quality management [TSQM] emphasizes different policies.Statements such as the following demonstrate the approach:Quality is free. It is the non-quality that costs money. Non-quality means thateverything is not done right from the beginning.About 35% of the company’s costs are due to faults and their corrections.Quality enhancement usually improves profitability by 5 to 10%. This is a sizable jump in the overall profitability. To get a similar increase in profitability with qualityimprovement, the company will need to increase the turnover by 20 to 25%, whichis quite a sizable task.