Meaning: -The concept of TQM was developed by Dr.W.E. Deming (regarded as the father of TQM) in 1960s in Japan. TQM is strategic approach that focuses on production of best possible product or services through constant innovation and timely action. It places emphasis on prevention of errors rather than on rectification.

Definition: - TQM is a management approach that places emphasis on continuous improvement in quality, in the interest of the organisation and that of its customers”.

The need and importance of TQM can be stated with the help of its advantages:

1.      Customer Satisfaction: - TQM stresses the need to satisfy both the internal as well as the external customer. Internal customer refers to the persons within the company who receives the work of another and then adds his or her contribution to the product or service before passing it on to someone else. TQM must focus on the customers, the eventual buyer of the product or services. To do so, the initial focus should be on meeting needs of internal customer before an attempt is made to meet the requirements of the external customers.

2.      Helps to Face Competition: - A Proper emphasis on TQM enables a company to face the competition in the market. The company may even come out as a winner or a leader. This is because of high quality product, at the lowest possible cost, produced by a dedicated team of work-force.

3.      Good will: - TQM generates name and reputation to the company in the market. This is because of its constant efforts in bringing the improvement in the products-design, variety, shape, size, colour, shade and other features.

4.      Highly motivated personal: - TQM develops a sense of dedication and discipline in the employees. There is willingness on the part of the employees to identify quality improvements and waste elimination opportunities. The employees become aware of their importance in the company’s performance and progress. This leads to greater involvement and participation of the employees.

5.      Lower rejection rate: - Internal rejection rate gets reduced considerably over a period of time. Various initiatives such as quality circles, process control, right first time approach, just in time approach, etc., enable the company to reduce rejection rate.

6.      Reduction in customer complaints: - TQM results in less or no customer complaints. This is because the products are built to specification with zero defects. Again, efforts are made to improve upon the customer specification so as to provide complete satisfaction.

7.      Better facilities to employees: - TQM results in higher benefits to the organisation in terms of increased profits. The higher profits are utilized in a way to provide better facilities to the employees in terms of training, salary, canteen facilities etc.

8.      Expansion and Diversification: - TQM generates a good name in the market. It also brings in higher returns. This enables a company to expand and diversify.