What's the bottom line payback for TQM?

The purpose of this article is to explore in detail TQM's impact on improving organization performance and how effective TQM strategies are designed and implemented. Both of these issues are addressed primarily by a discussion of a recent study of TQM efforts conducted by the U.S. General Accounting Office (GAO). The GAO study examines the impact of formal TQM improvement strategies on the performance of selected U.S. companies. The study grew out of a concern by a number of U.S. Congressmen that little is known about the impact of various quality-related efforts many companies have adopted to remain viable and profitable in an increasingly competitive world marketplace. Specifically, the study addresses: what has been the performance impact of adopting TQM improvement strategies, how has improved quality been achieved, and what lessons may be applicable to U.S. companies in general. A number of other studies are also used to expand upon the GAO data.