How Important is Total Quality Management for Businesses?

Business owners and managers know the importance of customer satisfaction and how costly it is to acquire new customers compared to maintain current ones. The total quality management system ensures quality assurance for customers, manages dissatisfied customers, and makes necessary corrections to prevent reoccurrences. In modern business, liberalization and competition of the economy are fundamental factors in achieving competitive market advantage. Quality products and services enable a company to attract and retain customers. Availability of a wide range of products and services has increased customer awareness and raised living standards. Increased demand for quality products and services and global revolution have compelled companies to invest their resources in adopting and implementing total quality management strategies.

Total quality management (TQM) has an essential and beneficial outcome on employees and organizational development. Having employees focus on managing quality and continuous improvement helps companies establish and uphold cultural values that enhance both customers’ and the organization’s long-term success. A total quality system enhances teamwork by creating cross-functional teams and knowledge sharing. An increase in coordination and communication among different groups strengthens institutional knowledge and enables companies to employ more personnel flexibly.

A total quality system requires continuous and consistent quality development. Improving total quality management system requires focusing on several key areas, namely:

  • Leadership
  • Quality supply management
  • Process control and enhancement
  • Quality system improvement
  • Employ participation
  • Customer focus

A total quality system will provide core values and principles on which your business can operate smoothly. These solutions include:

  • Managing customer compliance
  • Supervising production tasks
  • Controlling capital assets
  • Managing employee training
  • Audit and document management

Benefits of TQM

Cost reduction– As an outcome of fewer faulty products, companies have saved on customer support, field service, and product replacements. The company does not incur an additional cost, hence increasing profitability since these cost reductions flow to bottom-line profits.

Improved products– increased productivity leads to more output per employee, hence typically increasing profits.

Customer satisfaction-offering quality products improve interaction with customers since there are fewer customer complaints. A high customer satisfaction level increases market share, as the existing customer brings in more customers through reference.

Fewer product defects-TQM stresses improvement of quality within a process. This ensures that products and services are delivered right the first time. This reduces product recalls and fixes.

Building confidence– the continuous and proven TQM success and participation of employees-has led to improved employee optimism.  This has, in turn, reduced employee turnover, therefore reducing the cost of hiring and training new employees.


Total quality management is an essential strategy for the success of a business. It requires the participation of all departments to ensure a continuous quality improvement effort. It is crucial to focus on people, leadership, procedures, and resources to implement this strategy. Total quality management will operate and become part of organizational culture through all stakeholders’ involvement and commitment. A total quality system solution is a must in the modern competitive business. It will provide manufacturing intelligence, achieve comprehensive product quality, and long-term success and growth through customer satisfaction.