Total quality management (TQM) systems implemented to reduce defects in finished products with the goal of achieving zero defects.
These systems require timely data on defective products, rework costs, and the cost of honoring warranty contracts. Often companies use this information to help redesign the product in a way that makes it less prone to defect. Or they may use the information to reengineer the production process to reduce setup time and decrease the potential for error. TQM systems also provide information on non financial measures such as customer satisfaction, number of service calls, and time to generate reports. Attention to these measures, which employees can control, leads to increased profitability.
Total Quality Management (TQM) is a type of program aimed at maximizing customer satisfaction through continuous improvements.