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in Grade 12 by Master (947k points) | 6.0k views

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The Impact of Total Quality Management (TQM) on large businesses.


  •  More satisfied customers/Increased customer satisfaction.
  • Resources and time are used efficiently.
  • Costs are reduced as wastage is lower.
  • Productivity increases through good time management and high quality resources.
  • Products and services are continuously improving.
  • Business vision/mission may be reached more successfully.
  • Increased competitiveness as high quality products/services are provided.
  • Employee skills and knowledge are improved by constant training.
  • Large multi-national companies may adopt systems√ which have been proven successful elsewhere in the world.


  • Large quality management structures may become ineffective/difficult to control.
  • Mass production may complicate quality control as too many steps/ processes need to be controlled.
  • Large TQM systems are costly and may require additional administrative duties/staff.
  • Lack of training/skills development may result in lower productivity.
  • Decline in productivity, because of stoppages.
  • Investors might withdraw investment, if there is a decline in profits.
  • Bad publicity due to poor quality products supplied.
  • Decline in sales, as returns from unhappy customer's increase.
  • High turnover of staff, because of poor skills development.
  • Undocumented quality control systems/processes could result in error or deviations√ from pre-set quality standards.

by Master (947k points)
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