Problem Statement: The main challenge faced by Virginia Mason Medical Center (VMMC) was the loss of money, consequently staff morale was declining. To tackle this problem, Management wants to implement a new and innovative manufacturing management model called Total Quality Management (TQM) in the service sector. How can a manufacturing management model fit into the health care sector? Secondly, VMCC suffers loss of money for the first time in its history. How can the management of the hospital curb the cost? Thirdly, Management wants to provide flawless service to patients because even a simple defect may cause a patient’s life. But physicians are protected by the administration. They are guarded by the implicit compact that was about protection, autonomy and entitlement. How can management change the psychology of the physicians that they can do whatever they like because they are protected by the administration?

Conclusion: Since implementing the TQM management model has both upsides and downsides, management should implement TQM considering the downsides too. In my view, VMCC should standardize the work process so that it can reduce waste and save time. It can also give some autonomy to physicians as a team in special cases. Another conclusion focuses on reducing the cost of the company. I think Management can consolidate less profitable service lines, but with proper caution so that this decision does not affect the entire value chain activities. Last conclusion focuses on how to change the psychology of the physicians from emotional retreat. Management can review the performance of the physicians, group effort, group participation and respect for other members. It can also consider one or two incompetent group members too, so that one of the team members within the group cannot destroy whole team effort.
Analysis: VMCC executives think that TQM is a