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    <abstract>Since 1987, Hungary has been adopting the concept of total quality management (TQM) to improve its competitive outlook in world markets. The concept originated in studies carried out by Professor S. Shiba at IIASA in 1986-1987. The key prerequisite was the draft of a comprehensive national program of quality promotion as explained in the first issue of this Working Paper. The Hungarian Industry developed a potential for gradual quality improvement. Selected companies apply the TQM systems approach corresponding to the advanced knowledge and experience of quality promotion. 

The results achieved so far surpass the initial expectations, both in enhancing the competitive advantage of exported goods as well as in encouraging the management commitment to quality issues. 

The response of the Hungarian industry triggered enlivened interest for TQM in other East European countries. Neighboring Czechoslovakia is adopting the Hungarian experience and inviting Hungarian experts. Other countries begin to take incentives, information and examples.</abstract>
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