How to apply TQM in university?

You are a university manager in the quality control services division of a large New Zealand university. Your defined role is to apply Total Quality Management (TQM) principles to the assessment and management of quality in your university.

Total Quality Management (TQM) concerns itself with improving the quality of product as determined by customer satisfaction. The concept has been widely applied over the last decade in Australian Universities. However, your university's Academic Board has raised concerns that such an approach may be dangerous when applied to the core business of universities - learning. It is difficult to determine exactly what the product (or service) is, what? quality? means in relation to it, who the real end consumers of education are, and which of their understanding of? satisfaction? is most important.
TQM is about eliminating? error? (variation, yet variation (diversity) should be an objective and a sign of success rather than failure in universities. As well, TQM focuses on measurable rather than qualities.

Write a paper for the Academic Board explaining how you propose to tackle this quality exercise, and in which you address the perceived difficulties raised by the board about attempting to translate industrial rationalisation to higher education.