Reports the results of an attempt to ascertain the status of total quality management (TQM) in Hong Kong and southern China. Begins with a general introduction to manufacturing in the region. Information on the general awareness and status of TQM was collected using a combination of interviews, case studies, and a survey. Results indicate that TQM is now a widely accepted approach in the region, its benefits mainly seen in terms of improved customer/supplier relationships. However, there is a perception that TQM must necessarily lead to an increase in costs‐the penalty to be paid for its benefits.
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