In January 1989, Robert Hood, Jr was appointed President to lead the Douglas Aircraft Division, replacing retiring President Jim Worsham. McDonnell Douglas then introduced a major reorganization called the Total Quality Management System (TQMS). TQMS ended the functional setup where engineers with specific expertise in aerodynamics, structural mechanics, materials, and other technical areas worked on several different aircraft. This was replaced by a product-oriented system where they focus on one specific airplane. As part of reorganization, 5,000 managerial and supervisory positions were eliminated at Douglas. The former managers could apply for 2,800 newly created posts; the remaining 2,200 would lose their managerial responsibilities. The reorganization reportedly led to widespread loss of morale at the company and TQMS was nicknamed "Time to Quit and Move to Seattle" by employees referring to the competitor Boeing headquartered in Seattle, Washington.