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The twenty‐first century harbors intense global competition where the playing field and the rules of the game have changed. There is an urgent need for Pakistani businesses to change the way they operate. This paper introduces the total quality management (TQM) concept and argues that its implementation is the critical need of the hour for the survival of our industries both locally and internationally. The paper is divided into four segments: the first discusses the changed environment in which businesses are operating; the second gives a brief introduction to the TQM philosophy and discusses TQM systems and tools; the third discusses the effect of TQM on productivity and explains what is meant by “effective productivity”; and the fourth presents some of the benefits that were realized by international and local firms implementing TQM.

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