This research project will analyze the role and nature of business and strategic planning in driving the effective implementation and continuing development of Total Quality Management (TQM). The study will characterize effective planning processes, identify barriers to implementation and other areas which cause difficulty, and examine the way in which planning systems evolve in conjunction with the development of a TQM system. An important aspect of the research will be the examination of processes for resource allocation in conjunction with the planning process; in particular, researchers will investigate the way in which difficult-to-measure costs are incorporated into the decision-making process. A key goal of the research will be to improve the integration of business planning and quality systems planning. The research methods involve in-depth and on-site assessments of the planning systems of organizations in varying stages of development of their TQM systems. Interviews with employees at all levels and review of company documentation will be the primary data sources;survey methods may be used as a supplement. Companies participating in the study include AT&T Transmission Systems, First Chicago Bank, and Hewlett Packard.